Money supply in the mauritian financial sytem, Macroeconomics

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Question 1:

Discuss the alternative theories of the demand for money and their relevance in specifying a demand for money function for a small island developing economy like Mauritius.

Question 2:

(a) Highlight the main measures of money supply in the Mauritian financial sytem

(b) What are the main determinants of money supply?

Question 3:

(a) What are the main objectives of monetary policy?

(b) Explain the rationale for shifting from direct to indirect market based instruments of monetary policy with financial liberalisation.

Question 4:

Discuss the main macroeconomic and microeconomic functions of a Central Bank.


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