This coursework assessment for this course comprises one compulsory essay of no more than 1,500
words.
You should write an essay on one of the following questions.
1. Explain ‘finance by money creation’ following Cliffe & Brosens (2018), and show how the
‘loanable funds theory’ can be obtained as a restriction of this model.
2. Explain the reasons behind the rapid increase in ‘shadow banking’ in China during the 2009—
2015 period, and discuss what theoretical analysis suggests this increase in shadow banking
entails for the effectiveness of monetary policy.
