Answer to Question #273003 in Macroeconomics for Wendy

Question

Why is it important that South Africa should be consideration of USA’s decisions

when deciding on its monetary policy stance?

Answer 1

It is important for South Africa to be put into consideration of USA’s decisions when deciding on its monetary policy stance since these decisions tend have an impact on the world market and economy as a whole. Therefore, adhering to these decisions ultimately steers the country forward towards having a balance and guarding against any world trade shocks.