ECON 356 Lecture Notes - Lecture 1: Externality, Purchasing Power Parity, Canadian Dollar
Document Summary
Lecture 1 from equilibrium modeling. (purchasing power parity: european union: from greek bonds to brexit in a year, model of dissolution of an economic union. Greece wanted to pull out of the eu and so rose to: brexit (a major event) did not lead to good responsiveness by the market. Natural tendency for globalization leads to a certain volatility. Falling oil prices: fall in barrel to less than . The canadian dollar has constantly depreciated to the us dollar due to the fall in oil prices. The us dollar appreciated (gained strength). (cad rose to 1. 4) The gdp annual growth rate fell for canada. Recession- two or more quarters of negative growth. Alberta was not diversified and so suffered the consequences. Not enough time to set up export industries during the time of increasing demand for exports due to the. Canada lowered interest rates and usa increased interest rates. Recently there has not been fluctuations in interest rates.
