Monetary economics

Based on the extract above, and using economic theory and your understanding of the operations of the central bank and its mandate, answer the following questions: 1. Evaluate the SARB's monetary policy response to the outbreak of the COVID-19 pandemic. 2. Based on question I above, critically compare South Africa's monetary policy response to one other developing country (of your choice) that also uses inflation targeting as a monetary policy regime. Are the measures implemented against the pandemic's effects enough in comparison? Which ones are commendable? What improvements can be made?3. ASSIGNMENT QUESTION Read the extract below and answer the question(s) that follow. Essay question: It is now clear that the Covid-19 outbreak will produce the worst economic downturn in a century. The SARB has responded flexibly, quickly and aggressively to the COVID-19 crisis. So far, these actions have improved market functioning and are supporting economic activity. However, the larger economic outlook remains uncertain. Furthermore, financial markets, such as the money, bond, equity and foreign exchange markets have seen extraordinary levels of volatility and extreme price movements. Among its functions, the SARB has the responsibility to ensure that its monetary policy decisions are effective and that these decisions have an impact, even if it is an indirect effect, on the cost of borrowing in the economy. In addition, the SARB has a responsibility to ensure that financial markets operate smoothly and efficiently. Owing to the volatility and the movement of many prices, the SARB has implemented several measures to provide liquidity into the market, to stabilise markets and to ensure their orderly functioning. The SARB is continuously monitoring data closely and is ready to act appropriately in accordance with the monetary policy mandate, together with other economic policies to minimise the effects of the pandemic. Source: https://www.wits.ac.zaews/sources/wsg-news/2020/monetary-policy-and-the-coronavirus.html