Economics 1022A/B Lecture Notes - Extraordinary Measures, Mutual Fund, Output Gap

• School: Western University
• Department: Economics
• Course: Economics 1022A/B
• Professor: Jeannie Gillmore

Document Summary

Helps to achieve more efficient resource allocation and more stable economic growth. Supporters say that be keeping inflation low and stable, monetary policy makes its maximum possible contribution towards achieving full employment and sustained economic growth. Responsibility for monetary policy the boc act places responsibility for the conduct of monetary policy on the bank"s. Governing council: members include the governor, senior deputy governor, and four deputy. Will sometimes act in an emergency between normal announcement dates: normally only changes it by a quarter of a percentage point. Conduct of monetary policy: hitting the overnight rate target. Once an interest rate decision is made, the boc achieves its target by using two tools. Operating band and open market operation the operating band is the target overnight rate plus or minus 0. 25 percentage points. Set at the target minus 0. 25 percentage point. Banks won"t make overnight loans to other banks unless they earn a higher interest rate than what the.