QUESTION 1 - [25 marks]

Access the Bank of Canada web site to answer the four parts below.

1. [5 marks]Visit the "Statistics" tab to locate data (under Indicators) on the recent history of the following groups of monetary variables: (i) inflation control target; (ii) policy instrument; and (iii) monetary aggregates. Present monthly data of each set of variables in tabular form from March 2021 to March 2022 inclusive. (Please do not print the table directly from the website, Make a neat and precise one page table for only the months required, An MS Excel or Word table is ideal to do this neatly and compactly.)

1. [6 marks]Explain in detail what each variable represents, use Bank of Canada's website to find the answer to this question.

1. [7 marks]Explain the economic reasons for the evolution in the variables from March 2021 to March 2022 inclusive.

[7 marks]Find the Bank's latest press release (March 2022) about overnight rates and explain why the Bank decided to change (or not to change) its target for the overnight rate. Attach the press release to your answer

help resources

https://www.bankofcanada.ca/