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Monetary Policy and Economic Growth in South Africa

Research title: Monetary Policy and Economic Growth in South Africa This research paper aims to analyse the relationship between monetary policy and economic growth. Monetary policy is one of the instruments used by the monetary authorities to regulate the supply of money in the economy of a nation to achieve desirable economic development. In this paper, I will explain how in the short term, monetary policy has a temporary and limited impact on economic growth. And as for the long term, it does not affect growth, yet it can determine the long-term trajectory of inflation. I will use the example of South Africa to support my findings. South Africa experienced strong economic growth from 2000 to 2010 due to its inflation targeting monetary policy. This tool has enabled South Africa to achieve a low and stable general price level, which promotes a conducive environment for economic growth. The paper would, therefore, address the following research questions: ·       What is the relationship between monetary policy and economic growth? ·       What is the relationship between the instruments of monetary policy and fluctuations in inflation?  ·       Will it make any difference in monetary policy to follow an inflation targeting framework?  ·       What are the effects of monetary policy instruments on South Africa’s inflation and output? Methodology I intend to use charts and tables to support my findings. 1.     Paper should have at least FOUR sections. (1) Intro with research questions (2) methodology/data, (3) analysis (4) conclusion and policy relevance. 2.     The main text of the paper should not be longer than maximum of 10 pages (double space, 12 Times New Roman Font and standard paper margin). 3.     Make your research topic is very limited and focused, if necessary, focus on one country for your topic (as some of you have topics not related to any country). 4.     The paper overall should relate to the course material, one-way or the other. If not, I will have hard time to consider it as part of this course. 5.     If I find that the paper has taken material from other sources without referring to it, I will not be able to mark the paper but put it under plagiarism. 6.     On the introduction, pay attention to what is the hook of this paper (the importance of working on this paper). 7.     On the methodology, briefly outline how you are going to enquire on your research questions. 8.     On the analysis, you must have some charts and tables to proof your argument, not just some open statements that are not substantiated with data. 9.     You need to explain clearly your charts, tables, and so on. Just do not write statements after statements. It will not help you get good marks. 10.  Long tables and charts should be at the appendix (which will not be counted within 10 page). However, you can have a limited number of charts and tables in the text, provided again that the report overall is no longer than 10 pages.