Economics and Monetary Policy

This video covers the following learning objectives:

• Define and interpret major economic indicators:

  • Gross Domestic Product (GDP)

  • Consumer Price Index (CPI)

  • Unemployment rate

  • Interest rates

• Explain the role and mandate of the Bank of Canada:

  • Understand the Bank’s core functions: monetary policy, currency issuance, financial system stability, and funds management

  • Describe its goal of promoting economic and financial welfare in Canada

• Identify and describe key tools of monetary policy:

  • Overnight interest rate targeting

  • Open market operations

  • Forward guidance

• Understand the primary goal of monetary policy in Canada:

  • Maintain inflation at the 2% target within a 1–3% control band

  • Support sustainable economic growth and employment

• Analyze the effects of monetary policy on financial markets:

  • Assess the impact of interest rate changes on bond prices, equities, currencies, and real estate

  • Understand the inverse relationship between interest rates and bond prices

• Apply economic and monetary knowledge to real-world investment decisions:

  • Evaluate market conditions using macroeconomic data

  • Incorporate central bank policy outlooks into asset allocation strategies

  • Communicate economic insights effectively to clients and stakeholders