Current Economic Conditions and Monetary Policy Essay
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Description of the Final Assignment [Total 100 points]
In this assignment you will be acting as a policy adviser/analyst by collecting current data that would normally be examined as part of the monetary policy decision making progress, exploring trends in the data, commenting on suggested changes in monetary policy if certain risks materialize. Details for each part are included below.
Part 1: Current Economic Conditions and Monetary Policy [58 points]
In part 1 of your final assignment you will prepare a briefing reviewing the current state of the Canadian Economy and key data for its main trading partner the United States, and summarize the current stance of monetary policy in Canada.
In your report, you will need to include figures with data from Jan 2019-most recent available period for the following:
Data to collect includes:
COVID case data – Canada and US only
Equity prices: TSX and S&P500
US and Canada unemployment rates (total)
Commodity prices index for Agriculture, Base Metals, and Oil
Real GDP by Total and by major sector (US and Canada)
Canadian Business Lending Conditions
Canadian-US Exchange rate
Inflation for US and Canada (Total and Core measures)
The frequencies for each of the series will vary from Quarterly data to daily data depending on the series.
*Hint: Examine the Bank of Canada’s past Monetary Policy reports for commonly used sources of data. If you cannot locate the exact data series used by the Bank, you may use similar series provided it is from a reputable source and is properly documented in the data source table.
Your analysis should include a detailed description of what trends you are currently seeing in the data and how the data has changed from 2019. This portion of the assignment should contain about 4 pages (double spaced 12 pt font one inch margins) of discussion plus the figures. You will also need to produce an appendix (to be included at the end of the report) with a Table that gives information on the source of each data series, the name and identifier of the data series, a link to the webpage you downloaded the data from and information on the first and last data observation for the series you used.
You should also include a 1.5-2 page that cover: (1) a brief summary of current monetary policy in Canada, (2) the date when the Bank will make its next interest rate announcement, (3) a discussion of what economists and market watchers are currently expecting the Bank of Canada to announce and (4) what major data and economic releases will occur in Canada and the US between Aug 27, 2021 and the announcement data that the Bank should consider when making their a determination for announced changes on that date. Justify your answers and reference any relevant sources of information you used in your report.
Part 2: Examining Policy Scenarios [42 points]
In this part of the assignment you will be taking the role of an advisor on Canadian monetary policy. The Bank of Canada’s July 2021 Monetary Policy Report (published on their website), identified a number of risks to the inflation outlook. Summarize the risks identified and for each case, using what we have learned over the term, describe what policy actions you think the Bank of Canada should take if that risk is materialized. There should be one analysis for each risk. Of the risks identified, which, if any, do you believe have materialized since the release of the July 2021 Monetary Policy Report. Justify your responses with data, new market projections, and/or news articles. Any data sources, articles or market projections used should be properly document in a reference section. If you use figures and/or tables, please number them accordingly and attach them at the end of the brief.
Approximate total page length of Part 2: 4-5 pages
Note that points may be deducted for issues such as missing references, graphs missing elements such as labels, lack of required information in the data sources table, unreliable sources of data, data that does not reflect the most current official releases and poor quality of writing.
You can use graphs provided from online tools (provided that it covers the data required in a manner that make it possible to see the details for the current trends from 2019 with sufficient detail), or you may use a spreadsheet program such as Excel. The graphs do not all need to conform to a uniform style/format.