Recommended length: 4 000 words or roughly 7 typed pages. Write an essay with the title “Monetary policy implementation,

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Recommended length: 4 000 words or roughly 7 typed pages. Writean essay with the title “Monetary policy implementation, QE and thetransmission mechanism”, in which you pay careful attention to atleast the following aspects: The various reasons why the bankingsector needs cash reserves and the mechanisms which the SARB canuse to manipulate the quantity of cash reserves held by banks.(10/100) Why the short-term cash needs of the banking sector areboth highly inelastic and highly erratic. (10/100) Why the price ofcash (the short-term interest rate) has always been the operationaltarget instrument (OTI) of conventional monetary policy. (15/100)The various channels through which the OTI is presumed to impactspending according to the conventional view of the transmissionmechanism: the interest rate channel, the exchange rate channel,the wealth channel and the credit channel. (20/100) An alternativeview of the transmission mechanism, emphasising the role ofmonetary injections and leakages as transmission channels. (20/100)Why the quantity of cash (and the quantity of money, to an extent)is the OTI of unconventional monetary policy. (10/100) Theconditions under which conventional monetary and fiscal policy mayno longer be effective in countering a recession/depression and theconsequent need for unconventional QE policy. (15/100)