09 Jun WHAT WAS THE MAIN GOAL OF MONETARY POLICY BEFORE THE CRISIS?
For the coursework, you need to read the paper “UK Economic Policy and the Global Financial Crisis: Paradigm Lost?”
Apply the knowledge you’ve obtained from the course, and try to answer the following questions:
1. What is Hall’s model? (10 marks)
2. What are the main ideas behind monetarism? (10 marks)
3. What are the main ideas behind the New-Keynesian approach? (13 marks)
4. What was the main goal of monetary policy before the crisis? (10 marks)
5. What are its new goals after the crisis? Why? (13 marks)
6. How have the new goals been implemented? (10 marks)
7. What is the main problem with financial regulation (or banking policy)? (10 marks)
8. What would it be the main ingredient(s) of the new paradigm according to the authors? (10 marks)
9. Contemplating the current developments after the paper’s written. What is your own interpretation on the current monetary paradigm? (14 marks)
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