Question

How did the "Coyne Affair" motivate the current system of joint responsibility for monetary policy? Select the best answer O A. A royal commission resulting in part from the Coyne affair, recommended a system of joint responsibility in 1967 the bank act was amended to confirm this system O B. Louis Rasminsky, the third governor of the Bank of Canada, issued an ultimatum for the Bank of Canada to have the sole hand in monetary policy It was overturned by the government at that time OC. Mr. Coyne and policy analysts at that time failed to recognize how fiscal policy might be amplified and undercut the effects of monetary policy O D. All of the above

Answer 1

Answer :- Option 'a' is the correct Answer

Coyne Affair" motivate the current system of joint responsibility for monetary​ policy because" A royal​ commission, resulting in part from the Coyne​ affair, recommended a system of joint responsibility. In​ 1967, the bank act was amended to confirm this system."

Coyne Affair:- Controversy between gov and Bank of C, that made the governor of the Bank resigned for this tight M policy. It resulted the amendment made to Bank of Canada Act, federal only direct Bank to carry out, if it disapprove the M policy (high inflation to reduce $supply).