What has happened to the canadian economy over the last two years Essay

What has happened to the canadian economy over the last two years - Essay Example Seeking to explain these question and others that deal with the first global economic crisis in the twenty-first century and the response of the Canadian government as well as the Bank of Canada to this crisis, this research paper will explain and evaluate the policies of both branches of government. Australia is presently doing well financially, as are a whole bunch of other countries which have been able to deal with the effects of global economic crisis while successfully managing their economies. As this project is being typed, the Canadian dollar is close to $0.97 USD, which remains high and is perceived by some as an indication that the Canadian economy is doing well. Is this the case? This question is explored below (CBC, 2009). On July 23rd, 2009, the Bank of Canada released its quarterly Monetary Policy Report and enthusiastically announced that the recession that had afflicted Canadian businesses and the Canadian economy since the start of the global credit crisis was â€Å"over†. Showing that Canadian economic growth was slated to be 1.3% in the current fiscal quarter, the days of a shrinking economy were descried as a thing of the past. While unemployment continued to rise, Canadian growth was projected to be positive after three quarters of economic decline and Mark Carney, Bank of Canada governor announced to reporters that â€Å"We are on track for the recovery both in Canada and globally,". Speculation that growth will continue through 2009 and 2010, leading to a striking gross national product growth rate of 4% by the middle of 2010, enthusiasm was the result of this mid-summer announcement. Optimistic forecasts by the Bank of Canada has assured the electorate of a 3+ growth rate by 2010; this is ahead of forecasts by the International Monetary Fund and some of the major banks in Canada including ScotiaBank, Royal Bank and the CIBC. What accounts for the positive announcement and the fact that the Canadian economy is expected