ECN 204 Study Guide - Final Guide: Inflation Targeting, Core Inflation, Real Interest Rate
Document Summary
Council: the prime minister bears ultimate responsibility for monetary policy, the canadian government administers monetary policy through the office of the minister of finance, both b and d. Minister to represent the public interest: the minister of finance, the governor, and four deputy governors. Topic: the conduct of monetary policy: the sale of government bonds by the bank of canada, increases the banks" loans to the public, increases bank reserves, increases the quantity of money, lowers interest rates, decreases bank reserves. Topic: the conduct of monetary policy: the purchase of government bonds by the bank of canada, tightens credit conditions, decreases the price of bonds, fights inflation, decreases bank reserves, increases bank loans. 5: the current overnight loans rate is 3 percent, with the bank of canada"s operating band set at 2. 75 to 3. 25 percent. Topic: the conduct of monetary policy: when the bank of canada buys securities, reserves ________. The bank of canada"s assets ________ and its liabilities.
