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

Explain the advantage a and disadvantage of globalization, Q. Explain the a...

Q. Explain the advantage a and disadvantage of globalization? Advantages - 1. Economic growth 2. Lower cost 3. Improved availability of goods and services 4. Glob

Fixed versus floating exchange rates, 1 Answer True or False. Brief explain...

1 Answer True or False. Brief explain your answer. No credit without explanation. a Bretton Woods. During the Bretton Woods system countries with large current account surpluses

Balance of payments accounts, Q. Consider how the United States' balance o...

Q. Consider how the United States' balance of payments accounts are affected when U.S. banks give two billion in debt owed to them by the government of Argentina. Answer: In

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

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

Intra industry trade, what is the diffrent between inter-industry trade and...

what is the diffrent between inter-industry trade and intra industry

Monopolistic Competition, Suppose that industry 1 is monopolistically compe...

Suppose that industry 1 is monopolistically competitive, with a CES sub-utility function: U(c1,c2 ) = c1? + c?2 , 0 We let the marginal costs be denoted by c1(w,r), and the fixe

Foreign trade, Role of foreign trade to the economic development?

Role of foreign trade to the economic development?

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