- The ability of the Bank of Canada to influence the economy through changes in short-term interest rates and the money supply.
financial policy, fiscal procedure
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,
- A set of rules or guidelines.
- An insurance contract.
- Prime Rate — Definition,
- The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.