Econ. March 9 by Peter Melkonian

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Econ. March 9

Published on Dec 06, 2015

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PRESENTATION OUTLINE

The bank of canada

Mr. Melkonian

Photo by nosha

increasing money supply without increasing output

causes inflation-no one is better off

Photo by John-Morgan

too little money created is bad too

people can't purchase the output-prices fall, deflation

to make sure stuff like this doesn't happen

government keeps it in check with interest rate adjustment and monetary policy

Photo by orcmid

the bank of canada

fouded in 1934 at peak of the great depression

banks allowed too many people to build too much credit during 20s

lead to the crash in 29, depression of the 30s

Photo by Fabio Baccaglioni

banks were unstable

everyone panicked and pulled out all their money at once

canada hoped that if they had a govt run bank

things would be a ok

Photo by rayjbraz

chartered banks didn't like this

politicians might manipulate the flow of money

Photo by kevinpoh

10.

set up as a private corporation

just to make sure things don't get corrupt

Photo by Poster Boy NYC

11.

shares sold to the public

limits placed on number of shares one individual could own

Photo by Joe Shlabotnik

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only government connection

deputy minister of finance-on board, non-voting member

Photo by FuFuWolf

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shares later purchased

formed a crown corporation-keeps integrity though

Photo by spettacolopuro

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operate at arms length

don't let the government influence heavily

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bank notes

'money' issued by a specific bank which had value

Photo by smbuckley23

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bank of canada got rid of this

one type of currency-only issued by them

Photo by DonkeyHotey

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expected to fix everything

keynes's theories weren't around yet

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functions of the bank of canada

Photo by eldeeem

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director of monetary policy

control growth of money supply, interest, regulating credit, etc.

Photo by JAXPORT

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banker to chartered banks

the bank for our commercial banks

Photo by JeepersMedia

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protection from everyone pulling money at once

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banker to the federal government

revenues deposited in BoC and chartered banks

Photo by Ewan-M

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buys/sells federal govt. bonds

makes interest payments to bondholders

Photo by pasukaru76

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foreign exchange reserves

us dollar management-how it affects us

Photo by Axel.Foley

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issuer of currency

create money, try to get rid of counterfeit

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royal canadian mint

handles coinage

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organization of the bank

Photo by brewbooks

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governor/deputy governor

7 year term-pre-approved by government

Photo by Nomadic Lass

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tough to remove these guys from their job

pros and cons?

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good to have independence from the government

31.

governments have been in big trouble...

germany printed lots of money in the 20s-huge inflation

32.