C

CANADA
•Capital: Ottawa
•kanata, meaning "village" or "settlement
•World’s second-largest country by land area
•10th-largest economy
Canada has three levels of government:
•Federal- Prime Minister heads the federal
government
•Provincial or Territorial- Premier leads each
province and territory.
•Municipal (city)- Mayors lead municipal
governments
Constitutional Monarchy
Canada is a constitutional monarchy. This
means:
•the Queen or King of Canada is the head of
state
•the Prime Minister is the head of government
Parliamentary democracy
•Parliament has three parts:
•the Sovereign (Queen or King)
•the Senate
•the House of Commons
Queen Elizabeth II-
“Queen of Canada”
Justin Trudeau – Prime Minister
Monetary Policy is conducted by adjusting very short-term interest rates to achieve a
rate of monetary expansion consistent with maintaining a low and relatively stable
rate of inflation.
Monetary policy in Canada has three main characteristics:

•Monetary policy is conducted by the bank of

Canada
•There is only one monetary policy for all of
Canada.
•The Bank of Canada has only one policy
instrument.
 The objective of monetary policy is to preserve
the value of money by keeping inflation low, stable
and predictable.

KEY COMPONENTS
1.The inflation-control target
2.Flexible exchange rate
The ultimate objective of the Bank of Canada is to make the
best possible contribution to a well-functioning Canadian
economy and to the overall well-being of Canadians.
Fiscal Policy represents a particular area of economic policy. It involves the use of
government finances to influence the overall behaviour of the national economy. Of
particular importance to fiscal policy is a government’s budget, or annual levels of
spending, taxation, and borrowing.
• It is important to immediately note that fiscal policy in
Canada is pursued by a plurality of governments.
• When examining fiscal policy in Canada on the whole, one
must recognize that it is not a single, homogeneous system.
• The prime minister and cabinet are responsible for
appointing the Governor of the Bank of Canada and, as
such, may choose someone who holds views on economic
policy similar to their own.
Two Budgets
•Revenue Budget
•Expenditure Budget
Department of Finance
Its purpose is to ensure a healthy Canadian economy
 by developing policies of sound economic
management and providing expert advice to the 
government.
William Francis "Bill" Morneau
Since November 4, 2015, he
has been Canada's 
Minister of Finance