Macro Economic Policies In Canada
The Canadian Government and Macroeconomic Policies
It’s good to look at monetary and fiscal policies in terms of macroeconomics now that the Liberal party has been in charge of the Canadian government for shortly over a year now and to see what changes Prime Minister Trudeau’s party has been able to accomplish in the beginning of his first term. I will briefly discuss topics such as inflation targeting, the reason for the low currency rate for the current value of the Canadian dollar, unemployment rates, debt-to-GDP ratio and economic growth. By going over these concepts we can establish a firm basis of how the economy is doing overall in Canada today. Monetary policy is an important factor when dealing with inflation targeting and interest rates. The central bank of Canada controls …show more content…
Economist forecasters are even predicting that the loonie could drop even further to 65-cents compared to the US dollar counterpart. The cause is due to the OPEC agreement to cut oil production and the policy changes Donald Trump is aiming to change for the United States. If Trump’s administration puts its protectionist measures into effect it will seriously increase the risk of further weakening of the loonie. Some interesting facts to note are that the worth of the Canadian loonie when related to the US is that just comments released to the press or tweets alone made by President Donald Trump can cause the Canadian currency to go up or down.4 On a more positive note J. P. Gervais an agriculture economist believes that the dollar will stay around 75 cents and believes that this forecast is better for Canadian agriculture.4 It will help Canada be more competitive in foreign markets and the cost of doing business should go up, but at the same time increase the price of fertilizer and fuels to
It’s good to look at monetary and fiscal policies in terms of macroeconomics now that the Liberal party has been in charge of the Canadian government for shortly over a year now and to see what changes Prime Minister Trudeau’s party has been able to accomplish in the beginning of his first term. I will briefly discuss topics such as inflation targeting, the reason for the low currency rate for the current value of the Canadian dollar, unemployment rates, debt-to-GDP ratio and economic growth. By going over these concepts we can establish a firm basis of how the economy is doing overall in Canada today. Monetary policy is an important factor when dealing with inflation targeting and interest rates. The central bank of Canada controls …show more content…
Economist forecasters are even predicting that the loonie could drop even further to 65-cents compared to the US dollar counterpart. The cause is due to the OPEC agreement to cut oil production and the policy changes Donald Trump is aiming to change for the United States. If Trump’s administration puts its protectionist measures into effect it will seriously increase the risk of further weakening of the loonie. Some interesting facts to note are that the worth of the Canadian loonie when related to the US is that just comments released to the press or tweets alone made by President Donald Trump can cause the Canadian currency to go up or down.4 On a more positive note J. P. Gervais an agriculture economist believes that the dollar will stay around 75 cents and believes that this forecast is better for Canadian agriculture.4 It will help Canada be more competitive in foreign markets and the cost of doing business should go up, but at the same time increase the price of fertilizer and fuels to