BoC

Question 1

Who are the major participants in the decision-making- process of the BoC?

Answer 1

• Governing Council
• Monetary Policy Review Committee (MPRC)
• Four economics departments at the bank

Question 2

Who are the constituents of the Governing Council?

Answer 2

• Governor
• Senior Deputy Governor
• Four deputy Governers

Question 3

What is the governing council responsible for?

Answer 3

• making the final interest rate decision

Question 4

What is the role of the Monetary Policy Review Committee (MPRC)?

Answer 4

• Plays an important role in the discussions leading up to the decision

Question 5

Who are the constituents of the Monetary Policy Review Committee (MPRC)?

Answer 5

• Governing Council
• 5 or 6 advisors often supplemented by one or two special advisors
• Cheifs of the four economics departments
• Heads of the Montreal and Toronto regional offices
• Other senior Personnel

Question 6

What are the four economics departments at the BoC?

Answer 6

1. Canadian Economic Analysis
2. International Economic Analysis
3. Financial Stability (focuses on the activities of Canadian and foreign financial institutions)
4. Financial Markets (focuses on domestic and foreign markets)

Question 7

Implications of a flat Phillips curve

Answer 7

A flatter slope of the PC curve means that large fluctuations in the output gap are consistent with relatively stable inflation.