Did bank of canada respond to movements in exchange rate

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Reference no: EM131221938

On the text Web site, examine (i) the behavior of the U.S.-Canada exchange rate over 2005-2007 and (ii) the interest rate targets chosen by the Bank of Canada over the same period.

a. Over 2005-2007, did the Bank of Canada respond to movements in the exchange rate in the manner described in the case study ?

b. Economists attribute changes in Canada's exchange rate over 2005-2007 to increases in the prices of commodities that Canada exports, including oil and metals. Does this help explain the answer to part (a)?

Reference no: EM131221938

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