If the Bank of Canada chose to change its policy actions implemented during the heart of the recession faster than the timing suggested by the Government of Canada, this would be an indication of the Bank of Canada's

Question

Quizplus · Accepted Answer

The Bank of Canada is an independent central bank and is not bound to follow the Government of Canada's suggested timing for policy actions. Therefore, if they made changes faster than suggested, it would be a demonstration of their independence rather than a lack of credibility or a change in their monetary policy target. There is no evidence to suggest they would have a frictional relationship with the Parliament or that they have gone rogue.

If the Bank of Canada Chose to Change Its Policy