1.Why competing interest make the asymmetric information problem worse?

2.What is unconditional policy commitment? Discuss main advantage and the main disadvantage of an unconditional policy commitment.

3.Discuss the advantages and disadvantages of quantitative easing.

4.Compare the methods of controlling the money supply open market operations, loans to financial institutions, and changes in reserve requirements on the bias of the following criteria: flexibility, reversibility, effectiveness, and speed of implementation.