In economics, monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest to attain a set of objectives oriented towards the growth and stability of the economy.
The Bank was created by the Bank of Canada Act in 1934 and started operations in 1935.
It has regional offices in Toronto, Vancouver, Calgary, Montreal and Halifax.
Bank of Canada is responsible for the country's monetary policy and for the regulation of Canada's deposit-based financial institutions.
It consists of 15 members: the governor, the senior deputy governor, the deputy minister of finance and twelve outside directors.
bank note issue
government debt and asset management services
central banking services, and
monetary policy management
Serves as the lender of last resort
has explicit responsibility for the regulatory oversight of the national payments system
acts as the holder of deposit accounts of the federal government
-The Bank has instrument independence but not goal independence
Recent research shows that more independent central banks are better able to contain inflation and not at the expense of output fluctuations and high unemployment.
The bank employs tools such as
open market operations (purchase/sale of government bonds)
shifting of government balances between it and the direct clearing members of the CPA to implement changes in the money supply.
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