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Bank of Canada Act
Legislation creating the Bank in 1934.
Nationalization
Transition from private to national institution in 1938.
Monetary Policy
Management of money supply and interest rates.
Board of Directors
Fifteen members overseeing Bank operations.
Governor
Chief executive officer and chairman of the Board.
Senior Deputy Governor
Second-in-command at the Bank of Canada.
Outside Directors
Twelve members appointed by the finance minister.
Governing Council
Group led by the governor, includes deputy governors.
Currency Monopoly
Bank gained exclusive note issuance by 1945.
Funds Management
Debt-management services for the federal government.
Lender of Last Resort
Provides liquidity support during financial crises.
Regulatory Oversight
Supervision of the national payments system.
Open Market Operations
Buying/selling government securities to influence money supply.
Inflation Control
Bank's goal to maintain low inflation rates.
Instrument Independence
Central bank's ability to set monetary tools.
Goal Independence
Central bank's ability to define policy objectives.
Louis Rasminsky
Former governor emphasizing Bank's monetary policy role.
Public Ownership
Shift towards government control post-1935 election.
Graham Towers
First governor replaced due to monetary policy concerns.
James Coyne
Governor criticized for tight monetary policy in 1954.
Joint Responsibility System
Amendment clarifying government and Bank's roles in 1967.
Consumer Prices
Increased during Korean War, affecting monetary policy.
Unemployment
Rising due to tighter monetary policies in 1950s.
Interest Payments
Bank manages payments for government debt obligations.
Foreign Exchange Reserves
Managed by Bank to influence currency stability.
Counterfeiting Research
Bank conducts studies to enhance note security.
Joint responsibility system
1976 amendment allowing government directives to the Bank.
Minister of Finance
Can issue directives for Bank policy changes.
Bank of Canada independence
Most independent government agency in Canada.
Monetary Policy Report
Published by the Bank's Governing Council.
Transparency and accountability
Bank's efforts to improve communication since 1991.
Principal-agent problem
Conflict of interest between politicians and public.
Inflationary bias
Political pressure can lead to increased inflation.
Political business cycles
Expansionary policies pursued before elections.
Federal Reserve System
U.S. central bank, known as 'the Fed'.
Board of Governors
Seven members overseeing the Federal Reserve.
Federal Open Market Committee (FOMC)
Makes monetary policy decisions, meets eight times yearly.
Jerome H. Powell
Current Chairman of the Federal Reserve.
European Central Bank (ECB)
Central bank for euro area countries.
ECB Governing Council
Monthly meetings with National Central Bank heads.
Instrument independence
Ability to set interest rates independently.
Goal independence
Freedom to set monetary policy objectives.
Bank of England
Established in 1694, some instrument independence.
Bank of Japan
Focuses on price stability, some independence.
Public support
Crucial for Federal Reserve's decision-making.
Monetary operations
Conducted by National Central Banks in Eurosystem.
Rotation system
Used by ECB to manage Governing Council size.
Communication improvements
Increased press conferences and regional office reorganization.
Budget autonomy
ECB determines its own budget independently.
