L1059 – ADVANCED MACROECONOMICS
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L1059 – ADVANCED MACROECONOMICS
Coursework Assignment (A2)
1. Answer both parts:
(i) Why is it necessary that the private sector considers an inflation target to be credible? Discuss and explain two ways in which the monetary authority may seek to increase its credibility.
(ii) Explain what is meant by the Taylor rule and discuss some of the practical challenges the monetary authority may face in implementing it .
2. What have been the macroeconomic impacts of the lockdowns implemented by most governments in responses to the COVID-19 pandemic? Discuss what government policy interventions can be taken to try to reduce the adverse effects of lockdowns, illustrating this with examples from a country of your choice.
3. What factors are important determinants on investment by firms? Why is investment often volatile over time?
4. What have been some of the important macroeconomic impacts of the conflict in Ukraine on an economy of your choice, and through which channels have they operated?
2022-03-25