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ECO - The Conduct of Monetary Policy




Question;The Conduct of Monetary PolicyA) Broadly state the objectives of monetary policy as set by the US Federal Reserve? How different are the Feds policy in this regards from those of the Bank of Canada?B)What price index is the US Feds preferred way to measure inflation? What price index is the Bank of Canada?s preferred way to measure inflation?C) Compile monthly data on the preferred inflation rate measures of these two countries as far back as January 2010 to chart them against their respective central bank?s target for inflation rate (identified in part (a)).D)Based on the information deduced from your answer to part (c), has actual inflation rate overshot or undershot its target rate in each country over this period?E)In light of the above, what would be your conclusion about the conduct of monetary policy in each country? Do these central banks seem to have complied with their own rules of the game? If not what would you recommend they should have done?


Paper#55476 | Written in 18-Jul-2015

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