1.Discuss whether monetary policy can influence the real economy and in what way, for good or for bad? with special attention to QE (Quantitative Easing).
2.Explain in detail the differences between Friedman’s explanation of the demand for money and Tobin’s portfolio model (Post-Keynesian demand for money). What is the role of expectations in both theories?
3.Compare and contrast Keynes’s and Friedman’s theories of inflation.
4.Analyse, with the help of the ‘Impossibility triangle’, the effectiveness of monetary policy in an open economy and the effectiveness of fiscal policy in an open economy under flexible (or free floating) exchange rates.