Monetary Policy

Definition

  • The ability of the Bank of Canada to influence the economy through changes in short-term interest rates and the money supply.

Synonyms
fiscal procedure, financial policy

Related Terms and Acronyms

  • Bank Rate Definition,
    • Closely related to the overnight rate, the bank rate is the interest rate the Bank of Canada charges to banks and other major financial institutions for one-day loans.
  • Commerce Definition,
    • The systems and activities that impact business and trade within a nation and abroad.
  • Deflation Definition,
    • An actual decline in the general level of prices in the economy.
  • Depression Definition,
    • A prolonged downturn in the economy and level of business activity.
  • Economic Indicators Definition,
    • Statistics that help determine how the economy is faring. They include the Consumer Price Index, housing starts, and unemployment rates, among others.
  • Fiscal Policy Definition,
    • The use of government spending and taxation policies to influence the economy.
  • Foreign Investment Definition,
    • Investing money into a business in another country.
  • Gross Domestic Product (GDP) Acronym,
    • The total value of all the goods and services produced by the Canadian economy in a single year.
  • Inflation Definition,
    • A rise in the average level of prices in the economy.
  • Inflation Protection Definition,
    • A protection found in some insurance policies that allows policy limits to increase with inflation.
  • Macroeconomics Definition,
    • A study of the economy as a whole, particularly the interaction of its various components.
  • Microeconomics Definition,
    • Looking at the individual parts of the economy, with emphasis given to the market process and how it works.
  • Policy Definition,
    • An insurance contract.
    • A set of rules or guidelines.
  • Prime Rate Definition,
    • The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
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