During the 1960s and early 1970s, the Bank of Canada used ________ as the intermediate target in the conduct of monetary policy.

Question

Quizplus · Accepted Answer

During the 1960s and early 1970s, the Bank of Canada used the interest rate as the intermediate target in the conduct of monetary policy. This approach is known as the "operating band" system, where the Bank would set a range of interest rates within which it would conduct open market operations to influence the supply of money in the economy. This system was replaced in the 1980s with the use of the money supply as the intermediate target.

During the 1960s and Early 1970s, the Bank of Canada