Explain Two Concepts of Central Bank Independence

question 65

Essay

Explain two concepts of central bank independence. Is the Bank of Canada politically independent? Why do economists think central bank independence is important?

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Definitions:

School of Economics

An academic discipline that studies the production, distribution, and consumption of goods and services.

President Nixon

The 37th President of the United States, serving from 1969 to 1974, known for his foreign policy achievements and his resignation in the wake of the Watergate scandal.

Great Recession

A significant decline in economic activity spread across the economy, lasting from late 2007 to mid-2009, considered the largest downturn since the Great Depression.

Economic Thought

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people. It encompasses the evolution of economic ideas and theories over time.