# data[].attributes.body
Bank of Canada's objective is to preserve the value of money by keeping inflation low so that it can be stable and predictable for a good economic growth.
https://www.bankofcanada.ca/core-functions/monetary-policy/

# data[].attributes.attachment_link.title
The Bank of Canada Decision May Prove a More Capable Market Mover for CAD (Quick Take Video)

# data[].attributes.headline
How Monetary Policy Works: The Transmission ofMonetary Policy

# data[].attributes.subject
How Monetary Policy Works: The Transmission ofMonetary Policy

# data[].attributes.body
Transmission of monetary policy is the process where changes in the bank of canada;s policy interest rate work through the economy and affects the rate of inflation.

# data[].attributes.body
The four channels influences the level of supply and demand

# data[].attributes.body
Monetary policy is unable to stimulate economic demand to reduce unemployment or to combat inflation

# data[].attributes.body
According to bank of Canada " The best way to foster confidence in the value of money and to contribute to solid economic performance and rising living standards is by keeping inflation low, stable and predictable. In this sense, low inflation is not an end in itself, but rather the means to an end—a stable, growing, well-functioning economy. "
https://www.bankofcanada.ca/wp-content/uploads/2010/11/monetary_policy.pdf

# data[].attributes.body
For bank of canada to reach inflation target they either have to reduce or raise its key policy rate. When we discussed in class that when the bank increases policy rate it encourages financial institutions to increase interest rates on their loans and morgages.

# data[].attributes.body
Clearly from reading the data from the previous years to the current we can state that Canada's GDP growth decreased from 2.8 to 2.4 and has been steady which in turn helped unemployment rate go down as well as interest rates. The consumer price index hasn't increased a lot but just a mere 1.9%. According to bank of Canada global economic growth weakened because of external forces such as the weakening of the European union and the recession ,

# data[].attributes.body
The CPI inflation was really high in the 1900's but as canada starting to grow, the consumer price index started decreasing and aligning with the inflation target of 2%. As you can see from the graph the economy is within the inflation control rage and predicting the future years is much easier and stable
https://seekingalpha.com/article/207997-canada-commences-monetary-policy-normalization

# data[].attributes.body
In the video the person talks about how the no policy, fiscal policy and monetary policy can get one out of economic recession, and losing inflationary gap.

# data[].attributes.attachment_link.title
Fiscal & Monetary Policy - Macro Topic 5.1

# data[].attributes.body
What did you learn about the topic that most surprised you?

I learned that the monetary policy is a very big topic and economist believe in its magic. Economists believe that the monetary policy which focuses on keeping inflation low stable and predictable actually works in boosting the economy and its growth. I also learned that the interest rate takes long time to have a major impact on the economy. Low and stable inflations actually benefits Canadians in many ways.

Provide a real-life example of how this topic is relevant or interesting for you?

This topic is interesting because if you want to buy a house you wanna make sure you keep an eye on bank of Canada because if interest rate go up. You will not be getting a good deal but if they go down it would be best to take a loan out and buy something.

Which research did you find most interesting? Why?

I found it interesting the fact that canada’s monetary policy actually functions symmetrically around the inflation target. Meaning if the inflation rises above or below the target it is a concern to them. They will do whatever they can to bring it within the target range to keep the economy going nice and smooth.

# data[].attributes.body
Bank of Canada's target is between 1-3% and their ideal inflation control target is 2%.

# data[].attributes.attachment_link.title
The Transmission of Monetary Policy - Whiteboard