Why must the Bank of Canada decide to target either the interest rate or the monetary base?

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Why must the Bank of Canada decide to target either the interest rate or the monetary base? Why can’t the Bank of Canada determine acceptable values for both and then use open market operations to hit both targets?

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Macroeconomics Canada In The Global Environment

ISBN: 9780321931207

9th Edition

Authors: Michael Parkin, Robin Bade

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Question Posted: Jan 09, 2023 04:07 AM

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Why must the Bank of Canada decide to target either the interest rate or the monetary base?

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The Bank of Canada cannot target both the interest rate and the monetary base because changes in the ...View the full answer

Macroeconomics Canada In The Global Environment

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