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加拿大essay范文:Inflation Levels of the Bank of Canada

时间:2021-09-20 16:10:06 来源:www.ukassignment.org 作者:www.ukassignment.org 点击:21
加拿大essay范文:加拿大银行的通货膨胀水平。本文是一篇加拿大留学生essay范文,主要内容是分析并论证加拿大银行选择以非零的正通货膨胀率作为目标原因,加拿大essay通常以简短的文章为主,学校一般会要求学生通过各种文献资料检索和阅读,回答essay所提出的相关问题或者研究。小编这次就为各位展现一篇简短的加拿大essay范文供各位参考,下面就一起来看一下详细内容。
加拿大essay范文
加拿大essay范文
加拿大政府有责任提供法律制度,促进竞争,提供公共服务,最重要的是促进整个经济的稳定。这是通过采取多种行动、政策和法律来实现的,以使人民能够兴旺发达。在本文中,我将论证为什么加拿大银行会选择以非零的正通货膨胀率作为目标。我将看看所涉及的各种因素的含义,并论证银行为什么会选择这样做。             
The government of Canada is responsible of providing a legal system, promoting competition, providing public and most importantly promoting economy wide stability. This is done via multiple actions, policies and laws put in place so that the population can thrive. In this text, I will argue why the Bank of Canada may choose to target a low by non-zero, positive rate of inflation. I will take a look at the meaning on the varied factors involved and argue why the bank might choose to do so.
首先,加拿大银行的成立是为了“促进加拿大的经济和金融福利”。银行的职责是印钞、制定货币政策和决定加拿大银行的利率。这些任务需要认真分析,以保持经济稳定。加拿大央行的主要目标之一是将通胀率保持在稳定水平。出于各种原因,该行可能会选择将通胀率定为较低的正利率,但不会将其定为零。首先,与高通胀率相比,低通胀具有多重优势。首先,低利率允许消费者和企业制定更好的长期计划,因为他们的购买力在未来几年将保持稳定,而不是下降。之后,较低的通货膨胀率允许名义和实际利率降低借款成本。这使得加拿大人能够购买更多的商品,从而刺激经济。就公司而言,它们将进一步投资,以便随着时间的推移提高生产率。此外,加拿大央行目前设定的通胀目标是2%。这一目标创建于1991年,被称为“通胀控制目标协议”。这一利率使加拿大银行能够谨慎地维持经济,并判断通货膨胀率是最优的,最适合我们的经济。
Firstly, the bank of Canada was created in order to “promote the economic and financial welfare of Canada (Kenton, 2019). The bank’s role is to print money, set monetary policies and to determine the Canadian banks’ interest rates. These tasks require careful analysis in order to keep the economy stable. One of the key targets for the bank of Canada is the keep the inflation rates at a stable level. For various reasons, the bank might choose to target a low positive rate of inflation but to not set it at zero. To start, low inflation presents multiple advantages compared to high inflation rates. First, low interest rates allow consumers and businesses to make better long-term plans because their purchasing powers will remain stable over the years instead of declining (Bank of Canada, 2012). After, a lower inflation rate allows the nominal and real interest rate to reduce the cost of borrowing money (Appelbaum,2015). This allows Canadians to buy more and therefore stimulate the economy. In terms of companies, they will invest further in order to increase their productivity over time. (Pettinger, 2016).  Furthermore, the current inflation target set by the Bank of Canada is at 2%. This target created in 1991 and is called the “Agreement on the inflation-control target” (Bank of Canada, 2016). This rate allows the Bank of Canada to carefully maintain the economy and judges that the inflation rate is optimal and suits our economy the best.
其次,加拿大央行认为0%的通胀率并不有利。事实上,反对0%通货膨胀率目标的理由是多方面的。首先,零通胀目标是有风险的,因为一旦通胀率被设定为0%,银行就不能让通胀率降到负值。负通货膨胀率可能导致人们预期经济增长率低,从而减少投资,因此人们将避免持有现金。另一个论点是,零通胀率削弱了银行刺激经济的能力,因为政策利率是有限的,因为银行向贷款人收取的名义利率不能为负。此外,这鼓励人们消费和借贷资本,而不是储蓄。最后,金融当局失去了提供负利率的能力,因为他们不能让实际通胀率降到负值。
Secondly, an inflation rate of 0% is judged to be not advantageous by the Bank of Canada. As a matter of fact, multiple arguments against the 0% inflation rate target can be made. First, a zero-inflation target is risky because once the inflation rate is set at 0%, the bank cannot allow the rate to fall in the negative. A negative inflation rate may result in people expecting low economic growth which might yield less investment therefore people will avoid holding cash. (Martin, 2016). Another argument is the fact that zero inflation rate diminishes the bank’s ability to stimulate the economy since the policy interest rate is limited since the nominal interest rates that banks charge the lender cannot be negative (Martin, 2016). Also, this encourages people to spend and borrow capital instead of saving it (Billi, Kahn, 2008). Lastly, the financial authorities lose the ability to offer negative interest rates because they cannot allow the real inflation to fall in the negative. (Johnston, 2019).
第三,高通胀率可能会阻碍加拿大经济。事实上,高通胀率的后果之一是借款成本增加和抵押贷款利息支付增加。这些高利率会阻碍人们借钱和消费,还会增加借款人每月的按揭付款,从而降低他们的消费能力。下一步,尽管人们将更倾向于储蓄,但这也意味着他们将减少支出,减少对经济的投入,因为利率将通过储蓄产生更多收入。例如,一个稳定的经济体通常将通货膨胀率设定在2%到4%之间,因为事实证明它更稳定。事实表明,高通胀和高利率不会导致经济产出和就业的持续增长。此外,高通胀促进了更多的投机性投资,恶化了更具生产性的投资。这也会造成虚假的暂时性金融健康,但会掩盖实体经济问题。然后,买家会花更多的收入来保护自己不受成本和价格上涨的影响。与此同时,企业将提高价格、利率和工资,以应对日益加剧的通货膨胀。最后,高通胀会影响到那些工资跟不上物价上涨的人,比如退休人员。             
Thirdly, high inflation rate might hinder the Canadian economy. In fact, one of the consequences of high inflation rates is an increase in the cost of borrowing money and higher mortgage interest payments (Pettinger, 2019). These high rates will discourage people to borrow money and spend, it will also increase the monthly mortgage payments of borrowers therefore decreasing their ability to spend money. Next, although people will be more inclined to save money, it also means that they will spend less and inject less into the economy since the interest rates will generate more revenue by saving up (Pettinger, 2019). For example, a stable economy usually sets inflation rates between 2 and 4 percent since it has been proven that it is more stable. It has been shown that a high inflation and interest rate does not result in lasting gain in regard to economic output and employment (Riley, 2019). Further, high inflation promotes more speculative investments and deteriorates more productive investments (McCallum,2011). It will also create a false temporary financial health, but it will mask the real economy problems (Pettinger, 2019). Then, buyers will spend more of their income to try and shield themselves from increased costs and prices. In the meanwhile, businesses will increase their prices, interest rates and wages in response to the increased inflation. Last, high inflation will affect people whose salary are not keeping up with the increase of price, such as retired people with pensions.
In conclusion, adhering to a low rate of inflation allows the Bank of Canada to keep the economy stable while still allowing economic growth along with keeping interest rates affordable for borrowers. Zero percent inflation rate hinders the economy because the bank is unable to stimulate the economy by using traditional methods, people will also avoid holding cash since it will yield low returns and a going towards a negative inflation level is detrimental to the Canadian economy. After, high inflation rates discourage people to borrow money, leads to speculative investments over more productive methods. The interest rates will go up along with mortgages. Finally, a low inflate rate is ideal for our economy and is the ideal strategy employed by the Bank of Canada.
Bibliography 参考文献
APPELBAUM, B. (2015, April 29). Issue for Fed: Is a 2% Inflation Rate High Enough? New York Times, pp. B1–B4.
Bank of Canada. (n.d.). Inflation. Retrieved May 12, 2019
Billi, R. M., & Kahn, G. A. (2008). What Is the Optimal Inflation Rate? Economic Review (01612387), 93(2), 5–28
Johnston, M., & Investopedia. (2019, May 09). Learn How Negative Interest Rates Work. Retrieved May 12, 2019
Kenton, W. (2019, April 03). Bank Of Canada (BOC). Retrieved May 12, 2019
Martin, W., & Business Insider. (2016, July 29). This is everything that is wrong with negative interest rates. Retrieved May 12, 2019
McCallum, B. T. (2011). Should Central Banks Raise Their Inflation Targets? Some Relevant Issues. Economic Quarterly (10697225), 97(2), 111–131
Pettinger, T., & Economics Help. (n.d.). Effect of raising interest rates. Retrieved May 12, 2019
Riley, G., & Tutor2u. (n.d.). Inflation – Consequences of Inflation | Economics. Retrieved May 12, 2019
The Benefits of Low Inflation[PDF]. (2012). Bank of Canada.

加拿大essay范文在结尾处提到坚持低通胀率可以使加拿大央行在保持经济稳定的同时,仍能保持经济增长,同时保持借款人负担得起的利率。0%的通货膨胀率阻碍了经济的发展,加拿大essay中也说明了主要原因是银行无法用传统的方法刺激经济,人们也会避免持有现金,因为它会产生低回报,而走向负通货膨胀水平对加拿大经济是不利的。本站提供各国各专业essay写作指导服务,如有需要可咨询本平台。


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