University of Ottawa Money Demand Estimation and Money Supply Discussion
I’m working on a macro economics test / quiz prep and need support to help me understand better.
You are the economic advisor for the IMF. You are providing a course for junior economists. You need to compare and contrasts the issues discussed below along two basis namely 1. How do these issues differ between developed and developing countries as it relates to monetary policy and two?How does credibility and market institutions play into explaining the issues?In your answer, you should also discuss the degree to which both developed versus developing countries can control these variables and why:
1. Money demand estimation and money supply (estimation control of the monetary base)
2. Inflation targeting
3. Digital currencies and central banks effectiveness
4. Money policy and in particular inflation versus output stability
6. Money transmission mechanisms
Explain these issues in the context of the instructions above in as much detail as possible.
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