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Essays On Canadian Studies
Essay 29 of 333

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Bank of Canada's Monetary Policy
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An 11 page overview of the pros and cons of the bank's monetary policy, it's past success and current failures. The monetary policy focuses on a belief that inflation causes a decrease in productivity rather than any other influence. By retaining a rigid pricing policy in regards interest rates, however, Canada's dollar has been devaluated by the Asian crises and other local events because it chose to protect its pricing policy rather than compete with the U.S. during the early crisis stage. Investors chose to move their investments to the U.S., where (paid) interest rates are higher. Bibliography lists 11 sources.
Filename: Cnbnkcan.wps

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