ECON 304 Lecture Notes - Landing Vehicle Tracked, Overnight Rate, Foreign Exchange Market
21 Apr 2013
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Document Summary
Monetary policy in canada and the us: part 1. A central bank is not an ordinary commercial bank. It is a government agency that stands at the centre of a country"s nancial system. Central banks play a crucial role in the monetary/ nancial system and are responsible mainly for the conduct of monetary policy. They have tremendous in uence on interest rates, the money supply and in some cases the exchange rate, all of which have direct impacts not only on nancial markets but also on aggregate demand and in ation. This lecture will present a brief overview of the functions and importance of the bank of canada. We will also describe the objectives of monetary policy in canada and how monetary policy is implemented. In the second part, we present an overview of how the federal reserve bank conducts monetary policy. 2 organizational structure of the bank of canada.
