Political Science 2211E Lecture Notes - Lecture 13: Openmarket, United States Housing Bubble, Canadian Dollar
23 Dec 2017
School
Department
Course
Professor
Document Summary
Refers to: currency manipulation, foreign exchange rates, and domestic interest rates: things/tools that the central bank has to manage the economy. Monetary policy is similar to scal policy. Government manipulates the supply of money and credit in order to help to economy: the government can put in more money or take out money and it can alter (increase/decrease) rates of interest. Monetary = the central bank gets to decide interest rates and how much scal money is in the economy: the domain of the central bank. Fundamentally, their operations are about identical (all of the central banks). They manipulate currency and control interest rates, and control how much money i sin the economy. Central bank = a bank for commercial banks or a bank for our 5 major banks: td, rbc, bmo, scotia bank. Monday, december 4, 2017: when these banks need to borrow money, the look to the central bank.
