EC140 Chapter Notes - Chapter 30: Mutual Fund, Taylor Rule, Nominal Interest Rate
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EC140 Full Course Notes
Verified Note
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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 canada and the gov. Objective: ultimately political, stems from mandate of bank, which is set out of bank of. Objective of monetary policy as set out in the preamble to the bank of canada act of. 1935 is to regulate credit and currency in best interests of nation"s economic life and to mitigate its influence fluctuations in the general level of production, trade, prices, and employment. Bank"s job is to control quantity of money and interest rates in order to avoid inflation and prevent excessive swings in real gdp growth and unemployment. Joint statement of the gov. of canada and the bank of canada. In a joint statement (2011), gov. of canada and bank of canada agreed: Target will continue to be defined in terms of the 12 month rate of change in total cpi.
