Class Notes (836,147)
Canada (509,656)
York University (35,302)
ADMS 1010 (296)
Lecture

Economy.doc

2 Pages
85 Views
Unlock Document

Department
Administrative Studies
Course
ADMS 1010
Professor
Rebecca Jubis
Semester
Winter

Description
Canadian Economy (Cyclical expansions of 3 stages) • Demand for consumer goods, infrastructure expenditures, housing, strong immigration. Inflation↑ , unemployment↓ • Recession: government heavily invest in defence. Inflation↑ , unemployment↑ • Canadian dollar appreciated. Inflation↓ , unemployment↑ Bank of Canada • The goal of monetary policy is to rising living standards for all Canadians through low and stable inflation. • Graham Towers (governor) not actively pursue on monetary policy, he only changed the bank rate twice. • Later took over by Coyne (governor), he changed the bank rate 6 times and raising it each time. Coyne (Liberal) • Coyne emphasized the impact of inflation, encouraged economic growth and eliminated unemployment. • He continue to against inflation, because Inflation causes inefficiency, injustice, produce recession. • To the bankers: He demanded the bank has to have 15% liquidity ratio and 8% cash reserve. • This high ratio made the bank become less flexible and led the central bank to have full control of charter banks’ asset. • Later, he replaced the fixed bank rate with a floating rate, because 1) a rate higher than market rate can discourage borrowing, 2) floating rate can respond quickly to changes in market. • Also, he proposed that the banks have to create new saving banks to fund long- term investment. • Although bankers opposed this implementation, they had little choice but to comply. Government changed to Conservative ( under John Diefenbaker) • Donald M. Fleming who was a finance minister, against Coyne’s ideology of inflation and rising bank rate. • The Bank
More Less

Related notes for ADMS 1010

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit