Economy | The Canadian Encyclopedia

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  • Article

    Interest Rates in Canada

    Interest is the price charged to borrow money. Expressed as a rate, interest is a percentage of the amount of money borrowed (the principal amount) that is to be paid for an agreed period of time. Interest can be paid by a borrower to a lender (e.g., to a bank), but it can also be paid by a bank to individuals whose money the bank uses to lend money to other borrowers. In Canada, interest rates are determined by the policy of the Bank of Canada, the demand for loans, the supply of available lending capital, interest rates in the United States, inflation rates and other economic factors. The Bank of Canada helps the Canadian government manage the economy by setting the bank rate and controlling the money supply.

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  • Article

    Intergovernmental Finance

    The term "intergovernmental finance" refers to the web of financial flows linking governments in a constantly evolving federal system (see FEDERALISM).

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  • Article

    International Economics

    International economics consists of two main parts. The first is international trade theory and commercial policy. The second is international finance and balance of payments theory and policy.

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  • Article

    International Trade

    International trade is the buying and selling of goods and services between members of different countries. This exchange has been a key part of the Canadian economy since the first settlers came. Canadian settlers depended on exports of resources such as timber and grain (see Timber Trade History; Wheat). In the 20th century, Canada’s exports shifted to services, manufactured goods and commodities such as oil and metals. Since the 1980s, Canada has signed free trade agreements with dozens of countries to increase global trade and investment. Canada’s three biggest trading partners are the United States, the European Union and China. The United States is Canada largest trading partner by far. However, trade with China grew quickly in the 2010s, and this trend will likely continue. Click here for definitions of key terms used in this article.

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  • Macleans

    Job Security and Outsourcing

    This article was originally published in Maclean’s magazine on September 30, 1996. Partner content is not updated. So the meeting could have gone better. There was Mark Campbell, president of his own printing company, presenting to Kraft Canada Inc., executive level, in suburban Toronto. Initially, the meeting played exactly as Campbell had hoped.

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  • Macleans

    Jobs: Best and Worst

    Caroline Armstrong is, in her own words, "an extremely organized person" - some might consider her a bit obsessive. Call it what you will, her attention to detail served her well during a 19-year career in customer service with Canadian Airlines.This article was originally published in Maclean's Magazine on May 31, 1999

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  • Article

    Keynesian Economics in Canada

    Keynesian economics is a method of analysing the behaviour of key aggregate economic variables such as output, employment, inflation and interest rates. British economist John Maynard Keynes initially developed this analytic structure (and as a result virtually established the modern field of macroeconomics) during the 1930s, as a method of understanding the Great Depression.

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  • Article

    Labour Force in Canada

    The labour force refers to the total adult population available to the labour market at a specific time. Statistics Canada administers the Labour Force Survey (LFS), a monthly household survey, that provides estimates about employment and unemployment rates in Canada as well as labour market characteristics. Data about Canada’s labour force helps economists and other analysts understand the Canadian economy.

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  • Article

    Labour Market

    The labour market is a generalized concept denoting the interaction between the supply (number of persons available for work) and the demand (number of jobs available) and the wage rate.

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  • Article

    Laurentian Thesis

     Laurentian Thesis, an influential theory of economic and national development set forth by several major English Canadian historians from the 1930s through the 1950s.

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  • Macleans

    Martin Reports a Surplus

    Finance Minister Paul Martin’s mission was clear in delivering his annual fall economic update. Douse hopes that much new spending is in the works. Dismiss the argument that Ottawa can afford a big reduction in Employment Insurance premiums.This article was originally published in Maclean's Magazine on October 26, 1998

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  • Article

    Mercantilism

    Mercantilism is an economic theory and policy practised during Canada’s colonial periods. The theory of mercantilism holds that there is a fixed amount of wealth in the world. A nation’s wealth is thus dependent on exporting (selling to other countries) more than it imports (buying from others). European nations — including France and England (later Great Britain) — used this system to their advantage from the 16th century through the mid-19th century. The purpose was to extract as much wealth as possible from the colonies without investing much into them. The Atlantic slave trade is also inextricably linked to mercantilism. (See Black Enslavement in Canada.)

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    https://www.thecanadianencyclopedia.ca/images/tce_placeholder.jpg?v=e9dca980c9bdb3aa11e832e7ea94f5d9 Mercantilism
  • Article

    Minimum Wage in Canada

    Minimum wage is the lowest wage rate that an employer is legally permitted to pay to an employee. In Canada, provinces and territories regulate minimum wage (see Provincial Government in Canada; Territorial Government in Canada). The federal government also sets a minimum wage for employees covered by Part III of the Canada Labour Code. Minimum wage policy was originally established to protect vulnerable workers from exploitation, and it continues to be used by governments to safeguard non-unionized workers (see Labour Force; Unions).

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  • Article

    Municipal Loan Fund

     The Municipal Loan fund, established 10 November 1852 in Canada West, was created largely by Francis HINCKS, co-premier of the Province of Canada, whose government's central policy was railway development.

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  • Article

    Mutual Aid

    Mutual Aid is the principal economic means by which Canada assisted its allies with food, raw materials and munitions from May 1943 until the end of WORLD WAR II. The Mutual Aid Board, chaired by C.D.

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