During this COVID‐19 pandemic, the South African Reserve Bank (SARB) plays a crucial role in maintaining financial stability.Describe the roles that the SARB can play to ensure the objective of financialstability is met.

During this COVID‐19 pandemic, the South African Reserve Bank (SARB) plays a crucial role in maintaining financial stability.Describe the roles that the SARB can play to ensure the objective of financialstability is met.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 16QP

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During this COVID‐19 pandemic, the South African Reserve Bank (SARB) plays a crucial role in maintaining financial stability.
Describe the roles that the SARB can play to ensure the objective of financial
stability is met.

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“The COVID-19 pandemic brought to an end an extended period of stable (but only moderate) growth, low inflation, and low financial market volatility…The exceptional measures taken to contain COVID-19 are having a major effect on economic activity and the global financial system. The high level of uncertainty surrounding the size and duration of the economic downturn is accentuated by the uncertainty around the effectiveness of the various measures in containing the spread of the virus.”Financial Stability Review April 2020, RBA Critically Evaluate the effectiveness of the responses of central banks and the effectiveness of monetary policy during this crisis. Apply economic models in your explanation where applicable.