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:

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for quick action in emergencies; the "fight or flight" response system.

Parasympathetic Nervous System

Part of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles.

Dopamine

Dopamine is a neurotransmitter in the brain that plays a key role in managing rewards, motivation, pleasure, and motor function.

Phineas Gage

A historically significant individual in the study of neuroscience and psychology, known for surviving a severe brain injury that altered his personality and behavior.