Question: Why is it difficult to separate the trend from the cycle in output data, especially in real time, and why might it be best to consider the answers given by several approaches rather than one?

Question: Is the use of VAR models for estimating the effect of monetary policy on output straightforward or do they require further, potentially contentious, assumptions?

Question: How is Quantitative Easing expected to impact the economy? Is it straightforward to implement?

Question: Explain the economics behind Uncovered Interest Parity and exchange rate overshooting in an open economy with a floating exchange rate. Is their impact likely to reinforce or offset the effect of interest rate changes on the economy?

Question: What are the economic costs and benefits of free international capital flows? Is it easy for policy to maximise the benefits while minimizing the costs?