Economics For Business, The Canadian Economy in the years 2006, 2007 Essay

Economics For Business, The Canadian Economy in the years 2006, 2007 until end of 2008 - Essay Example The government has catalysed saving by reducing taxes and providing non-taxable savings accounts. (conservative.ca, 2009) Fundamentally, the main objective of the monetary policy of Canada is to ensure Canadian citizen’s wellbeing. This is by enhancing an economic growth that is sustained, increasing employment levels as well as improved standards of living. From experience, monetary policy only achieves this goal by way of offering businesses and households’ confidence as far as the value of money is concerned. In 2008, October 23rd the Bank of Canada released a report on monetary policy. The report contained current financial and economic trends in line with the control of inflation is concerned. According to the report, the three main interrelated world developments are affecting the economy of Canada and resulting to the economic growth outlook more unpredictable. This is due to the world financial crisis resulting to major strains in the markets of financial instruments. Demand is prospected to continue being weak due to exports. Lower prices of goods and services will also lead to an outlook that is damp since the terms of trade for Canada are set to decline as well as a growth in domestic demand that’s moderate. Generally, the Bank of Canada predicts a real GDP growth of 0.6% in years 2008 and 2009. 2010’s is set to be 3.4%. (bankofcanada.ca, 2008) In the 2009’s monetary policy report, the Bank of Canada noted that the economic environment continues to highly unpredictable. This is due to the large negative impacts by the recession of the global economy. Emanating from this, the Canadian economy is projected to fall by 3.0% in the year 2009. Recovery is likely to occur in the fourth quarter and the projected growth in the real GDP is 2.5% in year 2010. 2011’s economic growth is set to be 4.7%. The core