Canadian Monetary Policy and Chinese Monetary Policy Under Covid-19

The comparison between Chinese monetary policy and Canadian monetary policy regarding Covid-19 could intuitively display the socioeconomic differences and similarities between western counties and eastern countries. China and Canada were two typically eastern representative countries and western representative countries socioeconomically and politically. The People’s Bank of China (PBC) was the central bank of the People’s Republic of China which was under the regulation of the State Council. The Bank of Canada (BOC) was the central bank of Canada under the administration of the Governing Council. From 2019 to 2022, the central bank of China conducted structural monetary policy and tools by refinancing, reserve requirement policy and open market operation to mitigate the impact of the pandemic on the Chinese economy. The Bank of Canada applied both conventional and unconventional monetary policy to the Canadian economy by adjusting the target for the overnight interest rate to control the target the inflation rate. For the sake of understanding the response of the monetary policy by the People’s Bank of China and the Bank of Canada, statistics and graphs were employed in this paper to interpret the operation of these monetary policies and monetary instruments. The monetary policy’s reaction of China was more restrained than Canada under the pandemic.