ECS3701 Assignment 2

ECS3701 Assignment 2 ANTONIQUE AFONSO STUDENT NUMBER: ECS3701 – MONETARY ECONOMICS III ASSIGNMENT 02: This study source was downloaded by from CourseH on 04-23-2022 19:47:47 GMT -05:00 2.01 In south Africa, the South African reserve Bank (SARB) maintains liquidity requirements through the open market operations. Explain in detail how SARB conducts its monetary policy through this framework, as well as the operation of other tools used to supplement it. Monetary policy is simply the measures taken by the monetary authorities to impact the quantity of money, rate of interest and credit in the economy. This is done in order to achieve stable prices, full employment and sustainable economic growth in South Africa. Over the years there have been a number of frameworks adopted by the South African Reserve Bank (SARB) to achieve this. Monetary policy in South Africa is conducted using the money market through accommodation/refinancing policy and open market operations (OMOs).