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QUESTION 4 [20] Read the extract below and answer the questions that follow: SARB economist: The Reserve Bank can only do so much South African Reserve Bank Monetary Policy Committee member and head of economic research and statistics, Rashad Cassim, has said the Reserve Bank has done much for South Africa's economy, but the structural economic problems that pervade South Africa are beyond its power. His remarks came amid conflicting messages within the governing African National Congress about expanding the mandate of the Reserve Bank. Ace Magashule said on Tuesday that the ANC's National Executive Committee resolved during a weekend Lekgotla that the Reserve Bank's mandate would be amended beyond protecting the rand's value in the interests of economic growth and development to boosting employment. Minister of Finance Tito Mboweni and ANC sub-committee on economic transformation head, Enoch Godongwana, denied what Magashule said, saying the NEC made no decision to change SARB's mandate. Cyril Ramaphosa, in his capacity as ANC president, on Thursday evening put out a statement reaffirming the mandate of the central bank and describing the current spat as "not helpful". Cassim told attendees at the forum in Cape Town that few countries had a more explicit employment mandate than South Africa, but the Reserve Bank could only do so much on a practical level about the problems that pervaded the country. "We have a different way of looking at it, we call it flexible inflation targeting. When the outlook gap is negative, we ask what we can do. The structural unemployment rate is outside of the control of monetary policy. "The unemployment has grown for a variety of reasons. We have been saying for a very long time that there are ways to grow. One way is to get back to the baseline of well operating entities, efficient government and low costs of doing business. Once that is right, you can get to 3% growth, " Cassim said. Source: https:/www.fin24.com/Economy/sarb-economist-the-reserve-bank-can-only-do-so-much-20190607 Question Explain the South African Reserve Bank's Monetary policy regime in detail. In your answer, describe the role of / link between the liquidity shortages and the repo rate. Discuss the three main advantages and the three main disadvantages of the regime. Lastly, assess how effective the regime has been over the past 20 years