Compare and contrast the different views on the role of foreign
capital in the development and growth of a less developed country.
What is the consensus view about the role of foreign capital
inflows in the case of the Asian NIEs?
Compare and contrast the views of new classical economists and
mainstream economists on the issue of policy rules versus the use
of discretionary monetary and fiscal policy. 2. What rationale does
rational expectations theory provide for the ineffectiveness of
discretionary policies?3. What have been the changes or
modifications in thinking about monetary rules in recent decades?
4. Explain the mainstream economists’ justification for the use of
discretionary fiscal and monetary policy and their criticisms of
policy rules.
COMPARE AND CONTRAST the Keynesian and Hayekian views on the
following issues:
The effects of war on the economy (Do Hayek's view's remind you
of opinions of another economist whose work we studied in the
course? Who is that? What similarities do you see?)
The validity and role of government stabilization policy aimed
at stimulating the economy
The efficiency and performance of free markets.
https://www.youtube.com/watch?v=GTQnarzmTOc
1. Compare and contrast the exogenous and endogenous views of
the money supply process. Integrate the endogenous view into the
Keynesian analysis of the investment- saving relation
2. What are the institutional mechanisms through which banks can
extend their lending capacity beyond the limits imposed by reserve
requirements?