ECONOMICS – Daily Answer Writing Challenge, 10 July 2014
1) After 2003 till 2008 many emerging economies including India received huge capital inflows. To contain the effect of these flows the central bank sterilized the inflows. What is sterilization and how does it affect the supply of money in the economy? (300 words)
2) What are the three basic goals of public finance? Can these goals be coordinated into an overall pattern of policy or they are always in conflict? ( 150 words)
3) “General equilibrium analysis is solely concerned with relative prices” Explain (200 words)
