Monetary Policy Instrument Options – Given the domestic an

Monetary Policy Instrument Options – Given the domestic and international macroeconomic environment and financial market conditions, describe different conventional and unconventional (distinct) monetary policy instrument options (e.g., lower the target overnight policy interest rate to the effective lower bound) that the governing council of your central bank could use to stimulate aggregate demand in the domestic economy or achieve any of its other monetary policy objectives. Look at the various policy instruments developed at your own, and other, central banks during the last financial crisis as your guide. Make sure to explain theoretically and intuitively how each policy instrument works to stimulate aggregate demand, when and where the policy has been used, and remember to cite your references. (About 1000 words, 18% weight in group assignment grade)Describe 6 (conventional and unconventional) monetary policy instrument options – 3% for each optionFor each option:1% – Definition: how the policy instrument works in theory and intuitively1% – Discuss when and where the policy instrument has been used1% – Provide extensive references to academic journals and central bank working papers