The case for Bank of Canada independence includes the idea that ________.

Question

Quizplus · Accepted Answer

The case for Bank of Canada independence includes both the ideas mentioned in option A and B. A politically insulated Bank of Canada would be more concerned with long-run objectives such as a sound dollar and a stable price level, while a Bank of Canada under the control of the government might make the so-called political business cycle more pronounced. Option C is also a valid point, but it is not mentioned as a reason for Bank of Canada independence in this question.

The Case for Bank of Canada Independence Includes the Idea