The Government And The Central Bank - 1641 Words

Canada’s GDP is increasing and the unemployment is decreasing. And so, a cursory glance may suggest the country is performing well. However, in order to understand how successful the Government and the Central Bank’s efforts to ameliorate the economic situation have been we need to look beyond the narrow scope of two years set out by the essay title. As the world is more global now than before and Canada’s economy is export-based we have to wider our looks outside of Canada to understand whether their actions are reasonable made. Therefor I will in this essay compare Canada with other countries which also have large natural resource reserves, such as Russia and Norway. To understand the acts of the Canadian government and the†¦show more content†¦Canada is a developed country with large natural resource reserves. Trade statistics from recent years shows that the value of natural resource exports accounts for more than half of Canada’s merchandise exports. The United States, China and The United Kingdom are Canada’s most important trade partners and where more than 80% of the merchandised exports are destined (International.gc.ca, 2015) However, unlike other nations with large natural resource reserves Canada’s economy is not solely dependent on natural resources. According to the (Nrcan.gc.ca, 2013) Government of Canada’s calculations the energy sector directly account for only 7% of the GDP and other important sectors are: Car industry, Happenings before 2013 In 2007 - 2008 the world was struck by a financial crisis which lead the Eurozone into a debt crisis. Tom Worstall (2014) is reporting on Forbes that the Nobel prize award winner Ben Bernanke has revealed the financial crisis to have been even worse than the great depression in 1929 (The Economist, 2014). Many countries are still facing issues like deflation and slow growth (Knowledge@Wharton 2015). However, Canada got through the financial crisis less damaged than other countries and has since been able to present GDP growth and decreasing unemployment. (Haltom, 2015; IHS, 2015) Monetary and Fiscal Policy Macroeconomic policy in Canada is set out in its monetary and fiscal policy. Fiscal policy attempts to control the actions the