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

Global economics, How have global economic institutions(e.g. IMF,WB, and WT...

How have global economic institutions(e.g. IMF,WB, and WTO) been influenced by American values? Why have developing countries found it so difficult to adopt the neo-liberal econom

Fiscal policies to both internal and external balances, Q. Using the II - X...

Q. Using the II - XX framework, show using a figure that fiscal policies by themselves cannot bring the economy to both internal and external balances. Answer: Starting at poi

Open international market, Q. The U.S. is most probably the most open inte...

Q. The U.S. is most probably the most open international market among the industrialized countries. What then does the U.S. have to took by joining the WTO? Answer: There ar

Classical theory and neo classical theory, difference between classical an...

difference between classical and neo classical theory of international trade.

Terms of trade, Difference between net barter terms of trade and gross bart...

Difference between net barter terms of trade and gross barter terms of trade

Is there is liquidity in the international monetary system, Is there is Liq...

Is there is Liquidity in the international monetary system

Discuss the hechscher-ohlin model, Q. Countries that are willing to toler...

Q. Countries that are willing to tolerate an unusually high quantity of pollution relative to their supplies of other factors would leads to export "pollution-intensive" goods. D

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