Economic reasoning behind this behaviour, International Economics

Assignment Help:

In this year, the Bank of Canada raised the target for overnight rate consistently and continuously.  The rate changes are as follows:

Date

Target (%)

Change (%)

19 October 2010

1.00

---

8 September 2010

1.00

+ 0.25

20 July 2010

0.75

+ 0.25

1 June 2010

0.50

+ 0.25

  1. What is the economic reasoning behind this behaviour?  Do you think that this policy is appropriate for responding the current Canadian and world economies?
  2. In early this year, some countries in Europe (such as Greece earlier and Spain recently) faced serious financial crises, and they increased economic insecurities in Europe and the rest of the world.   Don't you think that this monetary policy conducted by the Bank of Canada may conflict with this regional economic crisis?  Explain.

 

 


Related Discussions:- Economic reasoning behind this behaviour

Case study of savings and loans association, Argus Savings and Loan Associa...

Argus Savings and Loan Association began in 1956 in Hometown. As is typical of savings and loan associations, Argus accepts the savings of individuals and organisations and uses th

Net barter terms of trade, what are the limitations of the net barter terms...

what are the limitations of the net barter terms of trade?

What is the purpose of the following figure, Q. What is the purpose...

Q. What is the purpose of the following figure? Answer: The use of the figure is to show the inflation convergence within the six original EMS members. The f

Internal goals of full employment and price stability, Q. How did the inter...

Q. How did the international monetary system created at Bretton Woods in 1944 allow its members to reconcile their external commitments with their internal goals of full employment

Calculate the effects of the fall in the relative price, Q. Calculate the ...

Q. Calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and land. Answer: For the reason that good 2 uses land, a f

International economics, opportunity cost version is an improvement over th...

opportunity cost version is an improvement over the classical theory of international trade?comment

Project, Visit to village panchayat for agriculture based project

Visit to village panchayat for agriculture based project

International trede, explain the newo clacical theory of international tred...

explain the newo clacical theory of international trede

Real income or economic welfare of the united states, Q. The Brazilian fir...

Q. The Brazilian firm is charging its foreign (U.S.) customers one half the price it is charging its domestic customers. Is this bad or good for the real income or economic welfa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd