ECON 1010 Chapter Notes - Chapter 30: Open Market Operation, Overnight Rate, Real Interest Rate
24 Jul 2016
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Document Summary
Canada"s monetary policy objectives and the framework for setting achieving that objective stem from the relationship between the bank of canada and the government of canada. The objective of monetary policy is ultimately political and it stems from the mandate of the of the boc which its set out in the bank of canada act: boc act. This emphasis on inflation has been made concrete by agreement between the bank and the government: joint statement of the gov"t of canada and the boc. The government of canada and the bank of canada agree that: the target will continue to be defined in the terms of the 12 month rate of change in the total cpi. Inflation target will continue to be the 2% midpoint of the 1 to 3 % inflation control change: the agreement will run for another five-year period ending december 31, 2016.
