POL 2101 Lecture Notes - Lecture 15: Neoliberalism, Comparative Advantage, Air Canada
6 Dec 2016
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Pol 2101 lecture #15 march 13, 2013 http://www. thecanadianencyclopedia. com/articles/national-policy http://www. thecanadianencyclopedia. com/articles/industrial-strategy. Key terms: economic policy (exam, national policy (exam) (first, second and third, import substitution industrialization- putting tariffs in place, liberal market economy- contrasting canada from european countries with coordinated market economy. Economic policy: governmental action to influence the economy. It is a combination of policies put together: different components. Monetary policy- bank of canada will regulate the supply or money and interest rates. Major role in the managing of a country. When the economy is in a recession, the bank will lower the interest rate in order to stimulate the economy, because the government wants people to be able to borrow money. When the economy is in inflation, the bank will increase the interest rate. Fiscal policy- they are set by government and include things like spending. For example, if the economy is in a recession or slowing down, the government may choose to invest in infrastructure.
