EC223 Chapter Notes - Chapter 15: Economic And Monetary Union Of The European Union, Eurosystem, Federal Open Market Committee
Document Summary
Formal structure of the bank of canada: 15 members. Great depression creation of bank of canada. Responsible for monetary policy and regulation of financial institutions. Board of directors: control responsibilities of bank of canada: governor, senior deputy, deputy minister of finance, 12 outside directors. Governor and senior deputy governor gets gov"t approval. Outside directors appointed by minister of finance. Governing council: consists of deputy governor and deputy governors: chaired by senior deputy governor and 4 deputy governors, create bank issued notes circulate currency, 1945 bank monopoly over notes, does research. Let them know when to borrow to maintain level of reserves: bank also engages in foreign trades for government influence exchange rates, six members responsibility of semi-annual monetary policy report. Monetary policy management: serves last resort lender to financial institutions that reach insolvency (liquidation, help ease liquidity problems, help fin. Institutions get out of bank panics: preventing bank runs/panics, base monetary: monetary liabilities of central bank.
