ECO 1302 Lecture 51: Lecture 51

• School: University of Ottawa
• Department: Economics
• Course: ECO 1302
• Professor: Mario Seccareccia

Document Summary

The governor, who chairs the board and is appointed by it. The deputy minister of finance, who sits as an ex officio 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 eight times per year at regular predetermined dates (or other dates if deemed necessary). While its main function is the conduct of monetary policy, the bank of canada also holds other responsibilities: It functions as the fiscal agent of the federal government in collecting taxes and managing the public debt. It oversees the clearing and settlement process of the canadian payment system. Central bank independence refers to the (cid:272)e(cid:374)tral (cid:271)a(cid:374)k"s a(cid:271)ility to (cid:373)ake decisions without political interference. Proponents of independence argue that it enables the central bank to take the long view and to make monetary policy decisions on objective, long-run, (cid:862)(cid:374)o(cid:374)-politi(cid:272)al(cid:863) criteria.