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A Federal election has been called in Canada to take place on September 20, 2021. There will be some discussion by politicians about the appropriate

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A Federal election has been called in Canada to take place on September 20, 2021. There will be some discussion by politicians about the appropriate use of macroeconomic policy. Use your knowledge of the macroeconomic models to explain whether the following statements make sense: a) "The Bank of Canada should return to targeting the money supply as a better, more stable way to control inflation than targeting the overnight rate." b) "Having a current account deficit is bad for the Canadian economy, and our priority must be to create a current account surplus."

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