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Answer 2 questions
(1) Explain the time-inconsistency problem in monetary policy. Does its
solution require setting up an independent central bank?
(2) Compare and contrast the properties of rational and adaptive expecta-
tions models of the macro economy.
(3) What is Lucas. Critique of policy evaluation? Discuss how badly it
undermines the case for using monetary policy to stabilise output.
(4) .Rational expectations implies that monetary policy cannot stabilise out-
put.. Is this true?.
(5) Discuss the e¤ects of a surprise devaluation on an economy with a .xed
exchange rate. Compare them with the e¤ects of a surprise rise in the money
supply on an economy with a .oating exchange rate. Comment on your .ndings.
(6) Explain the workings of the Classical model of the economy. Comment
on its strengths and weaknesses.

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关键词：考试题目 考试题 Expectations Independent devaluation 考试 题目 回答