a.) what is the current monetary policy of the Bank of Canada?

b.) The governors of the bank of Canada acknowledged it publicly that the inflation rate has been running at 7% or more since at least January 2022.

i) Is the behaviour of the inflation rate consistent with the current bank of Canada monetary policy?

ii) if not, what should happen to the workers expected inflation rate and the growth rate of nominal wages?

iii) if not, what should happen to economic activity, real GDP and the unemployment rate?

Answer rating: 100% (QA)

a The current monetary policy of the Bank of Canada is to maintain a low and stable inflation rate w... View the full answer