ECON 102 Lecture Notes - Mark Carney, Core Inflation, Open Market Operation
64
ECON 102 Full Course Notes
Verified Note
64 documents
Document Summary
Original proposal: buy all the toxic assets (at the taxpayers expense) to remove responsibility from the banks. If you only bail out the ones that are in trouble, the public will know which ones they have to take out their money of. If this happens, the suffering banks will fail anyway and due to the interconnectedness of all these big banks, the whole system is at risk to fail. Financial intermediaries ex. commercial banks, credit unions, insurance companies, etc: firms that take deposits from people and then lend it to people who need money. Owned by the government only shareholder: federal reserve system of the us is privately owned by the private banks. Operated by an appointed governor (mark carney: deputy of finance minister is only involved in bigger decisions, mark carney"s agenda: stable inflation of 2% Main asset: government of canada bonds (securities)
