ECO 1302 Chapter Notes - Chapter 13: Overnight Rate, Canada Act 1982, Inflation Targeting

• School: University of Ottawa
• Department: Economics
• Course: ECO 1302
• Professor: Mario Seccareccia

Document Summary

Monetary policy: refers to actions that the bank of canada takes to affect the macroeconomic performance of the economy. The ba(cid:374)k of ca(cid:374)ada is ca(cid:374)ada"s (cid:272)e(cid:374)tral (cid:271)a(cid:374)k a(cid:374)d he(cid:374)(cid:272)e a(cid:272)ts as ca(cid:374)ada"s monetary authority. The bank of canada is managed by a board of directors (12 directors appointed for 3-year term) The board meets on a weekly basis, handling ongoing administrative and financial matters related to running the bank. The bank of canada is responsible for conducting monetary policy that promotes the economic welfare of canada. The bank of canada also functions as the fiscal agent of the federal government in collecting taxes and managing the public debt, and it oversees the clearing and settlement process of the. Central bank independence: refers to the (cid:272)e(cid:374)tral (cid:271)a(cid:374)k"s a(cid:271)ility to (cid:373)ake de(cid:272)isio(cid:374)s (cid:449)ithout politi(cid:272)al interference. Monetary policy implementation: the set of rules, instruments, and day-to-day actions that allow the central bank to achieve its operational budget.