ECO105Y1 Chapter : it is good to have the summary before the class
Document Summary
Notes for lecture 17: macro 1: monetary policy and the role of the bank of canada. Economic concepts: macro goals: full employment and price stability, consumer price index, core inflation, central bank, role of central bank, inflation, cost push inflation, demand pull inflation, printing press inflation, monetary policy, easy money policy, Canadian currency, multiple expansion [contraction] of deposits in banking system and the. M1 money supply, the banking multiplier, open market operations [omo]. The macro economic goals for canada are full employment with price stability. I define full employment as 95% employment [5% unemployment] and price stability as the condition where the measurement of price increases does not exceed 5% per year. Core inflation in canada is falling and in the 2% target range. In recent years, the unemployment rates have been strongly declining in both canada and the. The unemployment rate in the united states reached a very unusually low rate of.
