Economy 52,844 Posted November 22, 2014 Share Posted November 22, 2014 http://ww2.financialpost.com/m/wp/tag/blog.html?b=business.financialpost.com/2014/11/21/canadas-inflation-rate-bounces-up-to-4-month-high&pubdate=2014-11-22&t=canadian-economy The over-heated housing market has responded much better than any economists may have predicted. Construction has slowed and become more balanced without actually crashing, and the rate of price appreciation is gradually moderating also... Banks are very well financed and in good condition to keep lending, manufacturing in hard hit Central Canada (Ontario and Quebec) is reboundig strongly, unemoyment dropping, and the Federal Government expects a budget Surplus this year The better than expected conditions may explain why inflation is beggining to ecceed the 2% target multiple months this year. As a result, if this continues Canadian may see interest rates rising from 1% as early as first half of 2015, earlier than any other major developed Nation! Link to post Share on other sites More sharing options...
JEANBO 364 Posted November 22, 2014 Share Posted November 22, 2014 Interesting. I'll try to mention this on my Macroeconomics class to see what my prof. thinks. :) Link to post Share on other sites More sharing options...
Economy 52,844 Posted November 22, 2014 Author Share Posted November 22, 2014 Interesting. I'll try to mention this on my Macroeconomics class to see what my prof. thinks. :) ask him what? if they should raise rates? and what country u from? and u study economics? :) Link to post Share on other sites More sharing options...
JEANBO 364 Posted November 22, 2014 Share Posted November 22, 2014 ask him what? if they should raise rates? and what country u from? and u study economics? :) Well to ask him about general opinion of this. I'm from Serbia and yes, I study economics (first year of college). We just started learning about macroeconomic indicators so I found this subject very interesting. I still have a lot to learn though. :) Link to post Share on other sites More sharing options...
Economy 52,844 Posted November 22, 2014 Author Share Posted November 22, 2014 Well to ask him about general opinion of this. I'm from Serbia and yes, I study economics (first year of college). We just started learning about macroeconomic indicators so I found this subject very interesting. I still have a lot to learn though. :) oh ok. so u must understand already how when the economy strengthens inflationairy pressures rise and demand for credit rises also and to keep inflation under control and to prevent over-heating and financial instability or bubbles you need to raise interest rates and when the economy is weak, lower interest rates are better in any case 1% interest rates are really low... but they are still higher here than the 0% in the EU, USA, Japan, Sweden Switzerland etc The UK is at 0.5% Australia and Norway are both higher than Canada at 2.5% Link to post Share on other sites More sharing options...
JEANBO 364 Posted November 22, 2014 Share Posted November 22, 2014 oh ok. so u must understand already how when the economy strengthens inflationairy pressures rise and demand for credit rises also and to keep inflation under control and to prevent over-heating and financial instability or bubbles you need to raise interest rates and when the economy is weak, lower interest rates are better in any case 1% interest rates are really low... but they are still higher here than the 0% in the EU, USA, Japan, Sweden Switzerland etc The UK is at 0.5% Australia and Norway are both higher than Canada at 2.5% Yes, I understand that. Except my floppy country keeps inflation low (about 2%), rates high (8%) and we are in recesion with our national currency being overrated and with big budget deficit. :smh: Link to post Share on other sites More sharing options...
Economy 52,844 Posted November 22, 2014 Author Share Posted November 22, 2014 Yes, I understand that. Except my floppy country keeps inflation low (about 2%), rates high (8%) and we are in recesion with our national currency being overrated and with big budget deficit. 2% is a healthy inflation rate... at least for mature economies developing economies should have faster economic growth and as a result, also higher inflation i dont know much about Serbias economy. are u guys a developed Nation? Link to post Share on other sites More sharing options...
JEANBO 364 Posted November 23, 2014 Share Posted November 23, 2014 2% is a healthy inflation rate... at least for mature economies developing economies should have faster economic growth and as a result, also higher inflation i dont know much about Serbias economy. are u guys a developed Nation? No, we are a developing nation. We still feel the effects of transition from a planned economy to a market economy and sanctions from 1992-1995 didn't help us either. If you want, you can read a summary on wikipedia but don't be fooled by positivity in this article, it's actually far from that. Link to post Share on other sites More sharing options...
Economy 52,844 Posted November 23, 2014 Author Share Posted November 23, 2014 No, we are a developing nation. We still feel the effects of transition from a planned economy to a market economy and sanctions from 1992-1995 didn't help us either. If you want, you can read a summary on wikipedia but don't be fooled by positivity in this article, it's actually far from that.hum GDP grew only 2.6% in 2013? That could explain weak inflation Developed and mature economies should grow around 2% (adjusting for inflation of course) when the economy is good, and 3% to 4% when the economy is recovering from a downturn.... And inflation should be 2% or 3% max Developing Countries on the other hand should be growing closer to 5% at least and inflation at least 4% if their economy is healthy. Doesnt have to be like that exactly and circumstances vary from one Country to another but im giving u an idea But the whole world for the most part os doing poorly. It started in Developed Nations but its spread to developing Nations also :MANiCURE: Link to post Share on other sites More sharing options...
JEANBO 364 Posted November 23, 2014 Share Posted November 23, 2014 hum GDP grew only 2.6% in 2013? That could explain weak inflation Developed and mature economies should grow around 2% (adjusting for inflation of course) when the economy is good, and 3% to 4% when the economy is recovering from a downturn.... And inflation should be 2% or 3% max Developing Countries on the other hand should be growing closer to 5% at least and inflation at least 4% if their economy is healthy. Doesnt have to be like that exactly and circumstances vary from one Country to another but im giving u an idea But the whole world for the most part os doing poorly. It started in Developed Nations but its spread to developing Nations also I get you. The biggest problem is that politicians who are not economists are "deciding" about economy. They care more about their imaginary and unreachable promises than to actually keep economy healthy and let it grow. Link to post Share on other sites More sharing options...
Economy 52,844 Posted November 24, 2014 Author Share Posted November 24, 2014 I get you. The biggest problem is that politicians who are not economists are "deciding" about economy. They care more about their imaginary and unreachable promises than to actually keep economy healthy and let it grow. some politicians dont know squat about economy... Here in Canada the leader of our socialist party (NDP) is an idiot. his name is "Thomas Mulcair and im so thankful they never won elections Once he said he didnt support raiding retirement age like the conservatives suggested because "it would hurt the job market by keeping people working longer". jobs are supported by business and economic activity which is basically production and consumption... when people retire #1 they arent producing, and #2 they consume less because they cut back on spending... so they contribute a lot less to economic growth... and thats not taking into account that you have less people paying taxes and financially draining the Country with their pension benefits i was shocked a party leader couldnt understand a concept as simple as that. He believes the myth that more people retired equals a stronger economy which means hes a total moron Link to post Share on other sites More sharing options...
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