ECS3701 Assignment 2 Semester 1 ANSWERS 2026 - Due 17 April 2026

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ECS3701 Assignment 2 Semester 1 ANSWERS 2026 - Due 17 April 2026

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Institution Monetary Economics

Course Monetary Economics

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ECS3701 Assignment 2 Semester 1 ANSWERS 2026 - Due 17 April 2026

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ECS3701 – Monetary Economics | Assignment 2 | Semester 1 2026

UNIVERSITY OF SOUTH AFRICA
COLLEGE OF ECONOMIC AND MANAGEMENT SCIENCES

ECS3701
MONETARY ECONOMICS

ASSIGNMENT 2 – SEMESTER 1
SUGGESTED ANSWERS AND DETAILED SOLUTIONS

Due Date: 17 April 2026

Prescribed Textbook:
Mishkin, F.S. (2019). The Economics of Money, Banking and Financial Markets.
12th Edition. Pearson Education.

DISCLAIMER: This document is intended as a study aid only.
Always cross-reference with your official UNISA study material.

University of South Africa (UNISA) – Due: 17 April 2026 Page 1 of 11

, ECS3701 – Monetary Economics | Assignment 2 | Semester 1 2026

Table of Contents

Question 2.01 – Monetary Policy Stance: Repo Rate Analysis 3
Question 2.02 – Nominal Anchor: Definition and Benefits 4
Question 2.03 – Policy Instruments vs Intermediate Targets 5
Question 2.04 – Money Demand and the Quantity Theory 6
Question 2.05 – Inflation Targeting and Central Bank Credibility 7
Question 2.06 – Exchange Rates and Monetary Policy 8
References 10

University of South Africa (UNISA) – Due: 17 April 2026 Page 2 of 11

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Number of pages: 11
Written in: 2025/2026
Type: Exam (elaborations)
Contains: Questions & answers

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