Word count: 2000
Due: 17th Aug
Please write 500 words for each question
1. What are the relevant targets for monetary policy? Consider inflation targeting, price level targeting, monetary targeting and nominal GDP targeting.
2. How does monetary policy feed through into the real economy? What role does the banking sector have in this process?
3. Should central banks consider asset prices (e.g. house prices, equity prices) when setting policy rates? Do central banks do this in practice?
4. Should monetary policy be used to stabilise share prices / house prices? Do central banks attempt to do this in practice?