I chose this website as it is the most direct source on Canada’s monetary policy and provides a breadth and depth of material specific to Canada that is not available on other websites. The piece of information I found most useful was the section explaining quantitative easing. The Bank typically controls inflation by influencing short-term interest rates. However, since rates have been so low for so long the Bank had to expand its toolbox to include quantitative easing in order to stimulate the economy and increase inflation back to the 2% target level. 

I selected this website as one of the major beneficiaries of the Bank of Canada’s monetary policy has been the Canadian housing market. This website compiles many interesting articles and research pieces focused solely on the Canadian housing market which I found difficult to locate on other websites. I find the most interesting thing about this website is noticing the tone of the articles over time. For example, if you view articles from a few years ago many were recommending Canadians take advantage of lower interest rates to purchase a home. Now, many of the articles are blaming these low rates on an overheated real estate market that threatens to destabilize the Canadian economy. 

I chose this website as it presents counter arguments the policies established by the Bank of Canada as well as a history of monetary policy in Canada and how the policies have changed over the years. I could not find other sites that presented clear arguments against current policies or that challenged the objectives of the Bank. The most useful information I found on this website was the comparison between Keynesianism and Monetarism and the influence each has had on Canadian monetary policy. Keynesianism dominated in the 1960’s through 1980’s. This period experienced strong economic performance but also periods of double-digit inflation. As a result, of this double-digit inflation Monetarism took over as the dominate policy influence in the late 1980’s as a way to stimulate the economy without creating double-digit inflation.

I chose this website as it is unique in that it provides structured learning modules specific to the Canadian financial system. I find the learning module on exchange rates to be the most useful as I was unaware of how exchange rates enable monetary policy. Canada has what is known as a flexible exchange rate which permits the Bank of Canada to pursue independent monetary policy that is best suited to Canada’s economic circumstances. A flexible exchange rate means the foreign exchange market determines the worth of the Canadian dollar. 

What I found most useful in this video is the fact the Bank is acknowledging the relevance of cryptocurrencies and explained that they are conducting internal studies into creating a cryptocurrency that could potentially be issued by the Bank of Canada in the future.

The piece of information in the video I found most useful was the explanation around how interest rates impact inflation. When interest rates are high, borrowers are less inclined to borrow and savers are more inclined to save. This will tend to lower inflation and vice versa when rates are low. It is interesting to understand how the bank can influence inflation by changing interest rates. 

I found this video useful as it provided an easy to understand explanation of the various tools the Bank has at its disposal and how it will use each depending on the type of economic environment we are in. I found the most interesting part of this video to be the explanation on controlling money supply and how this is accomplished by changing reserve requirements at chartered banks. A higher reserve ratio will decrease the money supply and a lower reserve ratio will increase the money supply. The reserve ratio is a specified percentage of deposits that the bank must hold onto rather than lend. 

I found this video useful as it helped me to understand how quantitative easing can impact the structure of different markets and the serious implications that could result should the easing stop. I think it is very interesting how the Bank of Canada was so quick to implement these measures but don’t seem to be concerned about the impact when they eventually have to unwind all the assets they purchased. It seems like the Bank is running out of options in terms of monetary policy.