Milton Friedman said, "Inflation is always and everywhere a monetary phenomenon." Most  economists would agree with this statement. Thomas Sargent has said all hyper-inflations end with a fiscal consolidation. Most economists would agree with this statement. Reconcile these two statements 

by explaining using words, mathematics, and any appropriate graphs, the fiscal causes of hyper-inflation and the role of money in this case. 

II.

 

Explain two reasons why the Bank of Canada does not have complete control over the level of bank deposits and loans. 

III.

Give each of the monetary policy rules introduced this term.