ECO 1302 Lecture Notes - Lecture 13: Best Response, Canadian Dollar, Taylor Rule
15 Mar 2017
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Money and income- money is a stock, income is flow: stock of money influences the rate at which people earn income, money affects gdp. Monetary policy refers to actions that the bank of canada takes to affect the macroeconomic performance of the economy. Ce(cid:374)tral (cid:271)a(cid:374)k is a (cid:271)a(cid:374)k for (cid:271)a(cid:374)ks. The ba(cid:374)k of ca(cid:374)ada is ca(cid:374)ada"s (cid:272)e(cid:374)tral (cid:271)a(cid:374)k a(cid:374)d he(cid:374)(cid:272)e a(cid:272)ts as. Bennett passed the bank of canada act in july of 1934. In 1938, the bank of canada became a fully publicly-owned crown corporation. There are also 3 additional directors: the governor, who chairs the board and is appointed by it, the senior deputy governor, the deputy minister of finance, who sits as an ex efficio non-voting member. The bank of canada is responsible for conducting monetary policy that promotes the economic welfare of canada. The target overnight interest rate is set via consensus within the governing council 8 times per year.
