International Monetary Economics I

Yrd. Doç. Dr. M. Nedim Süalp

ÖRNEK SORULAR

1 – How would you analyze the effect of an expansionary (or contractionary) fiscal policy under the fixed price, fixed exchange rate regime with no capital mobility? Please state your model and assumptions clearly and be explicit.

2 – How would you analyze the effect of devaluation under the fixed price, fixed exchange rate regime with no capital mobility? Please state your model and assumptions clearly and be explicit.

3 – How would you explain the ineffectiveness of monetary policy under the regime of fixed price, fixed exchange rate and perfect capital mobility? Please state your model and assumptions clearly and be explicit.

4 – How would you analyze the effect of an expansionary fiscal policy under the regime of fixed price, fixed exchange rate and imperfect capital mobility? Please state your model and assumptions clearly and be explicit.

5 – Is fiscal policy effective under fixed price, flexible exchange rate and perfect capital mobility system? Why or why not? Please state your model and assumptions clearly and be explicit.

6 – What is the effect of monetary policy under the regime of fixed price, fixed exchange rate and perfect capital mobility? Explain clearly.

7 – How would you analyze the exchange rate dynamics under an unanticipated monetary shock (i.e. exchange rate overshooting)? Please state your model and assumptions clearly.

8 – Explain the monetary-price adjustment mechanism under the regime of flexible price, fixed exchange rate and no capital mobility? Please state your model and assumptions clearly and be explicit.

9 – What are the consequences of devaluation, both in the short and long run, under the regime of flexible price, fixed exchange rate and no capital mobility? Please state your model and assumptions clearly and be explicit.

10 – Discuss whether monetary policy is effective, both in the short and long run, under the regime of flexible price, fixed exchange rate and perfect capital mobility? Please state your model and assumptions clearly and be explicit.