Relationship Between Rising Us Unemployment and the Canadian Dollar

The weak economic growth in Asia ad in Europe has helped in benefiting Canada and the US. Asia and Europe had also faced deflationary pressures which were caused by the changes in the rates of interest rates in the economy. The risk of the inflationary pressure in the US led to the increasing concern of the federal reserves. The Canadian bonds have been trading at a considerably lower yield as compared to the US bonds in the market. The situation was supposed to be maintained if the Canadian dollars in the economy appreciated relatively to those of the US dollars in the economy. The outlook for the bonds in the economy looked to be very attractive an aspect which was attributed to the changes in

1. a) i) The content of the table is about Canada’s economic and financial situation divided into four sectors: real sector, fiscal sector, financial sector, and external factor. Each of the four sectors is divided into smaller categories. For example: real sector is divided into national accounts, production index, labor market, prices indices. The other three factors are also divided into smaller categories just like the real sector. In addition, this table has the most recent GDP to show the success of Canada’s economy. The overall goal of the data is to show Canada’s recent economic situation.

Department of Finance Canada (2009) states Canada has been significantly affected by the global recession and Canadian economy growth began to slow in the fourth quarter of 2008. Real GDP declined by 3.7 percent in the fourth quarter of 2008. Although Canadian economy is being affected by the global recession, the Canadian economy is still better than other industrialized countries (CMA Business Case)

Despite the close geographic coordinates, the two countries have very little in common regarding their financial sectors. The American banking system flourishes when the population has a high borrowing amount that unfortunately carries a larger risk for the government. In comparison, the Canadian system is most prosperous when the population has a high security level on their finances and the banks hold a substantial portion of liquid assets to assist with any financial issues.

The Canadian economy has hit a recession because of the fall in oil prices, among multiple other factors. Since Canada is one of the largest producers of oil, this has affected our oil exports, as well as our currency. Recently, the Canadian economy posted negative growth output of -0.5% in the second quarter. Furthermore, the Canadian currency

Canada’s economy has to face many issues. One of these being the rate of exchange. The canadian dollar has been going up and down constantly throughout many years. “The first paper money issued in Canada nominated in dollars were British Army notes, issued through 1813, The Bank of Canada was created in 1934 and given responsibility, through an Act of Parliament.” Much has happened to the dollar throughout the years; the economy always varied depending on the dollar worth because it has always played a major role on the economy. Pertaining to the issues of the exchange rate, I will discuss two main ways of it and how it plays a big role on the economy in present times.

Today is Canada one of the strongest financial country's of the world and a member

For the period of high inflation, government’s goal is to lessen the spending in the economy by making it less attractive to acquire loans or by taking currency out of circulation which eventually reduces inflation (Investopedia, 2008). “A major reduction in the rate of money-supply expansion ultimately will reduce even strongly entrenched inflation. But this accomplishment may take several years during which output and employment both fall (Wirick, 2001)”. The new contractionary monetary policy in New Brunswick will directly raise the interest rate by making money harder and more expensive to obtain. As a result, investment in New Brunswick will fall because the cost of borrowing money increases. Net exports tend to rise due to an increase in the interest rates because New Brunswick’s investment will relatively be more attractive to both domestic and foreign investors.

The government has an enormous influence on the economy of its nation. As of November 2015, Canada will be under the leadership of Justin Trudeau and his Liberal party. The article predicts how the newly elected government will influence the Canadian economy. The government affects the economy through the manipulating the value of its currency, government bonds, and annual spending. Factors such as interest rates and government debt would affect a nation’s currency and consequently, the economy. Government bonds help determine interest rates. Annual spending on government projects, such as infrastructure, would increase the GDP (Gross Domestic Product) of a country. GDP increases will boost the economy.

When America’s stock market crashed, Canada’s sock market dropped immediately. Because 65% of Canada’s imports come from USA and 40% of exports were to also to America. (Elshamy, 2015) And as soon as we raised the prices on our exports America no longer wanted Canadian goods anymore.

This is an analysis of the Province of British Columbia 's financial condition. To determine the province 's financial condition it is important to consider trends and indicators that influence B.C. Trends that have the ability to affect B.C 's financial condition include trends in population and revenue. Furthermore, one must also consider the indicators that can impact the financial condition which include: sustainability, flexibility and vulnerability indicators. Overall, by investigating B.C 's financial relationship with these trends and indicators, this analysis will be able to provide a foundation for understanding the financial condition of the province of British

The Canadian dollar has dropped to a nearly record low, as the dollar and the oil prices are declining in tandem. Oil prices affect the Canadian dollar because oil extraction and refining account for a large part of Canada’s GDP and is a main economic driver. However, as a result of the weak Canadian dollar, Canadian exports have become very attractive and demand for non-energy exports has increased. Similarly, Canadian imports are becoming more expensive, resulting in a negative impact on consumers. The GDP of Canada is expected to decrease by $15-billion per year commencing at the end of 2016 (The Canadian Press, 2016). This is expected because most of foreign investment into Canada is made into the oil and gas sector, and as this sector becomes less attractive, reduced investment occurs. The Canadian stock market has declined 20% since mid-2014, the same time as the decrease in oil prices

The following essay will thoroughly examine the severe economic downturn of 2008, formerly known as the housing bubble collapse. We will mainly focus our discussion on the effects the financial crisis had on Canada and the U.S and examine why both countries were affected differently. Although the collapse of the housing bubble is the most identifiable cause, it is extremely difficult to pinpoint one specific defining moment or event triggering the global financial collapse. There are many factors involved, due to the complex nature of the financial systems across the world, and this paper will delve in the key contributing variables that led to this financial crises.

The debate about the relationship between inflation and unemployment is mainly based on the famous “Phillips Curve”. This curve was first discovered by a New Zealand born economist called Allan William Phillips. In 1958, A. W. Phillips published an article “The relationship between unemployment and the rate of change of money wages in the United Kingdom, 1861-1957”, in which he showed a negative correlation between inflation and unemployment (Phillips 1958). When the unemployment rate is low, the inflation rate tends to be high, and when unemployment is high, the inflation rate tends to be low, even to be negative.

Interest rates are normally associated with inflation. Consumer spending and economic growth is encouraged as a result of low interest rates. However, inflation can occur if supply is lower than demand due to consumption increases but this is indeed not a bad outcome though foreign trade and investment will be lacklustre as opposed to the cash rate being higher which more likely attracts foreign investment and trade.