【PPT精品课件】货币金融学7版英文课件--17-大学课件2.pptVIP

Chapter 17 Tools of Monetary Policy Overview So far we derived a multiplicative relation between M and MB M = m ? MB and discussed three monetary policy tools that the Bank of Canada can use to manipulate i and M. These tools are open market operations Bank of Canada advances, and government deposit shifting In recent years, however, the Bank conducts policy by setting an operating band for the overnight interest rate ior and targeting ior at the midpoint of the band. In doing so, the Bank permits M to do whatever necessary to keep ior on target. The Role of Money Before we go on, we have