EC140 Chapter Notes - Chapter 30: Canadian Dollar, Dual Mandate, Potential Output
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EC140 Full Course Notes
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Document Summary
Canada"s monetary policy objective and the framework for setting and achieving that objective stem from the relationship between the bank of. Is ultimately political and it stems from the mandate of the bank which is set out in the bank of canada act. Bank of canada act: the objective of monetary policy as set out in the preamble to the. Bank of canada act: the bank"s job is to control the quantity of money and interest rates in order to avoid inflation and when possible prevent excessive swings in real gdp growth and unemployment. Joint statement of the government of canada and the bank of canada: government of canada and the bank of canada agree that: The target will continue to be defined in terms of the 12 month rate of change in the total cpi. The inflation target will continue to by the 2% midpoint of the. The agreement will run for another five year period: inflation rate targeting:
