Class Notes (838,027)
Canada (510,626)
Economics (219)
ECON 1020 (99)
Lecture 78

ECON 1020 Lecture 78: Lecture 78
Premium

3 Pages
45 Views
Unlock Document

Department
Economics
Course
ECON 1020
Professor
Ryan A.Compton
Semester
Summer

Description
o982 Voters hold Parliament responsible (BOC Governor not elected, he is appointed) Bank must be protected from political pressures Goals of Monetary Policy: 1. Keep inflation low, stable, and predictable PRIMARY goal is INFLATION for Bank of Canada Inflation target range of 13 annually Range allows for room to increase or decrease prices to push demand and output 2. Moderate the business cycle Troughs arent so low BOC lowers interest rates to moderate Peaks arent so high BOC raises interest rates to moderate 3. Help the economy achieve full employment and sustained growth Global Perspective 13.1: Central Banks: Canada: Bank of Canada United States: Federal Reserve System (the Fed) in Washington, DC 12 regional federal reserve banks Goals and Tools for Monetary Policy: Tools of Monetary Policy: o 1. OpenMarket Operations o 2. Bank Rate OpenMarket Operations: Bank of Canada BUYS bonds from the chartered banks Chartered bank gives BOC bonds, and the BOC gives the Chartered Bank money (increasing the chartered banks reserves) o This increases money supply of chartered banks, and increases excess reserves allowing them to give out more bonds
More Less

Related notes for ECON 1020

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit