RSM230H1 Lecture Notes - Lecture 3: Landing Vehicle Tracked, Xm Satellite Radio, Hyperinflation
Document Summary
Monetary policy - increase or decrease spending by manipulating the interest rates. All of the canadian banks bank with the bank of canada. Work for 7 year terms to ensure that their decisions aren"t influenced by the politics of the government: separate the bank of canada"s roles from the elected government"s role, separates fiscal and monetary policy. Slide 6: make sure that canadian currency is hard to reproduce. Slide 7: only organization that is allowed to print canadian money, made by a company in australia, bank of canada tells them to print more or less. Slide 11: polymer notes lasts 2. 5 times longer than paper money, harder to reproduce. Volume of counterfeit money decreased with introduction of polymer notes. Money that the bank prints is a liability: whoever has the note, can go to the bank and demand x dollars of value in return for the note.
