1、Assignment 2Due date: November 23, 2009 (Submit at the beginning of class)Background: To fully understand discussion of Canadian economic issues in newspapers and magazines, it is necessary to be familiar with key events in Canadian economic history. The purpose of this assignment is to help you bui
2、ld your knowledge of key events in Canadian economic history from 1962 to 2009.Instructions: 1. In your own words, write a chronology of significant events in Canadian economic history, 1962-2009 of from three to five pages in length. Keep a backup copy. Consult and abide by the universitys policy o
3、n plagiarism.2. You should consult sources such as Frank et al., Principles of Macroeconomics, 3rd Canadian edition; books on Canadian economic history in the library; the “Recent events” section of the Wikipedia entry on the “Economic History of Canada; and the “Key Economic Events” list at Canadia
4、n Economy Online (http:/www.canadianeconomy.gc.ca/english/economy/key.html), 3. Chronologies are often written in point form. Your chronology, however, should be written in complete sentences. Each entry should be a paragraph.4. You are not limited to one event per year. Some years may have more tha
5、n one significant event. Many years will have no events listed.5. Your entries should cover issues such as the following.1）When in the 1960s did Canada adopt a fixed exchange rate and how long did it last? 2）When was the Auto Pact?3）When was the Canadian Pension养老金 Plan brought in? 4）When did the fe
6、deral government become involved in Medicare医保?5）When did Canadas debt to GDP ratio reach a low point in the 1970s? 6）When did Canada have an Anti-Inflation Board? 7）When was the recession of the early 1980s and how severe was it? 8）When was the Canada-U.S. Free Trade Agreement implemented? 9）When w
7、as the GST implemented? 10）When did the Bank of Canada adopt inflation-rate targeting? 11）When was the early 1990s recession? 12）When was NAFTA implemented? 13）When did Canadas debt to GDP ratio reach a peak in the 1990s? 14）When and how was Canada affected by the Asian crisis? 15）When did the boom
8、 take place on the Toronto Stock Exchange? 16）When was the economic slowdown in the early 2000s? 17）How did the Bank of Canada respond? 18) When did the recent global financial crisis begin?6. Your entries should not be limited to the events listed above. Moreover, your entries should explain the si
9、gnificance of the events, not just when they happened. Research:Hydro-Qubec: In 1944, the Quebec government passed a law expropriating the electric and gas assets of the Montreal Light, Heat and Power Company Consolidated. This partial nationalization created the Quebec Hydro Electric Commission, so
10、on commonly referred to as Hydro-Qubec. development of power-generating facilities continued. The remaining privately owned electricity companies were nationalized in 1963. This action greatly expanded Hydro-Qubecs generating capacity, and made it responsible for generating and distributing electric
11、ity throughout Quebec. This was central to Quebecs economic strategy to generate electricity at home and thereby reduce its dependence on external power sources.1） When in the 1960s did Canada adopt a fixed exchange rate and how long did it last?Before 1962, Canada used to allowed Canadian dollar to
12、 float. When it comes to 1962, Canada make Canadian dollar pegged at 1 CAD = 0.925USD, and this has lasted for 8 years until 1970, after that the currency has floated again. These policy has filled with argument, personally I think its a mistake. Because floated rate can be a buffer for the economic
13、, and the economic system and situation has huge difference between Canada and US, which means when Canada economic system or the US economic system face economic impact, the other country need a floated rate policy to response.1） Canada allowed its dollar to float in 1950, only returning to a fixed
14、 exchange rate in 1962, when the dollar was pegged at 1 Canadian dollar = 0.925 U.S. dollar. This peg lasted until 1970, after which the currencys value has floated.2） When was the Auto Pact?Canadas prime minister has signed The Canada-United states Automotive Agreement with the president of the US
15、on January 16th 1965. And this agreement is commonly referred as Auto Pact today. The reason to signed this agreement is that during early 1960, Canada had a massive auto trade deficit with the US. The significant for this agreement is that it has totally transformed the North American car manufactu
16、ring landscape eliminated trade tariffs between Canada and US, and merger those two country in to a single manufacturing and selling market. And also this agreement has ensured Canada as a major car manufacturer in North American.2) By the early 1960s, Canada had a massive auto trade deficit with th
17、e United States. On January 16, 1965, the CanadaUnited States Automotive Agreement, commonly referred to as the Auto Pact, was signed by Canadas Prime Minister and the President of the United States. This trade agreement transformed the North American car manufacturing landscape. It became the model
18、 for managed trade, setting a precedent for broader free trade between Canada and the United States. The Auto Pact eliminated trade tariffs between the two countries and created a single North American manufacturing market. The Auto Pact also contained safeguards for Canada to ensure that major Nort
19、h American car manufacturers continued their investment and production in this country.3） When was the Canadian Pension养老金 Plan brought in?The Canndian pension Plan which we also called CPP was launched at the start of 1966. Basically CPP mandates all the employed Canadians who are 18 years old or o
20、ver to contribute a prescribed portion of their earnings income to a nationally administered pension plan. The significant for this policy is that it can balance the earning income during your life. You have to contribute when your earning income is high, when it come to disability, child rearing pr
21、oblem, CPP will give the help your need.3) The CPP program mandates all employed Canadians who are 18 years of age and over to contribute a prescribed portion of their earnings income to a nationally administered pension plan. The CPP was launched at the start of 1966. There are provisions that enab
22、le the lower-earnings years in a contributors contributory period to be dropped out due to disability, child rearing, or other reasons. CPP benefit payments are taxable as ordinary income. The CPP also provides disability pensions to eligible workers who become disabled in a severe and prolonged fas
23、hion, and survivor benefits to survivors of workers who die before they begin receiving retirement benefits. If an application for disability pension is denied, an appeal can be made for reconsideration, and then to the Canada Pension Plan / Old Age Security Review Tribunals or Pension Appeals Board
24、shttp:/en.wikipedia.org/wiki/Canada_Pension_Plan4） When did the federal government become involved in Medicare医保?5） The Canadian government passed the Medical care act at 1966, according to the Canadian constitution health care is a provincial area of jurisdiction, so the government have to negotiat
25、e with each province one by one. And by 1972, finally each procince had established its own system of free access to physician services and the federal government shared in the funding.4) By 1961, agreements were in place with all provinces and 99% of Canadians had free access to the health care ser
26、vices covered by the legislation. By 1966, the majority of Canadians were insured for physician services through various private or public insurance plans. That year, the Government of Canada passed the Medical Care Act. However, according to the Canadian constitution health care is a provincial are
27、a of jurisdiction so the Government of Canada entered into negotiations with each province individually. By 1972, each province had established its own system of free access to physician services and the federal government shared in the funding.5）When did Canadas debt to GDP ratio reach a low point
28、in the 1970s?6） When did Canada have an Anti-Inflation Board?7） Anti-inflation policy was introduced in 1975 in Canada to rapid acceleration in both wage and price inflation. Both of problem happens frequently in all the country in the world. The Act was overseen by the Anti-Inflation Board. The boa
29、rd then point out the action should aimed at controlling inflation, for example rebates to consumers, wage rollbacks and price reductions.6) In 1975, the Anti-Inflation Act was introduced in response to a rapid acceleration in both wage and price inflation, which had pushed the Consumer Price Index
30、inflation up to 10.7% in 1974 and 10.9% in 1975. It was the only time in Canadas history that such wage and price controls occurred in peacetime. The Act was overseen by the Anti-Inflation Board. As well as monitoring the wage and price controls, the board investigated such things as gas prices, pri
31、vate sector employee wages, insurance premiums and even beef prices. The boards recommendations led to actions aimed at controlling inflation, such as rebates to consumers, wage rollbacks and price reductions.8） When was the recession of the early 1980s and how severe was it? 9） In the early 1980s,
32、there is a recession, and it all started in December of 1980.it is like a nightmare and the nightmare has lasted for two years ended in November 1982. The reason for the recession is the contractionary monetary policy. The result for the recession is that inflation reached to 13.5%.7) The early 1980
33、s recession was a severe recession which began in December of 1980 and ended in November 1982. It has been thought that the primary cause of the recession was a contractionary monetary policy established by the Federal Reserve System to control high inflation. Inflation, which had averaged 3.2% annu
34、ally in the post-war period, had more than doubled after the 1973 oil shock to a 7.7% annual rate. Inflation reached 9.1% in 1975, the highest rate since 1947. By 1979, inflation reached a startling 11.3% and in 1980 soared to 13.5%8）When was the Canada-U.S. Free Trade Agreement implemented? The Can
35、ada-US free trade agreement was signed in 1988, but it was implemented in January 1, 1989. And because of this agreement, both of Canada and US has became more integrated. Canadas export to the US has increased sharply. 8&12) For decades, the United States has been Canadas largest trading partner. Y
36、et there had been barriers to the free flow of goods and services. In the late 1980s, there was a push to liberalize trade. Canada wanted improved and secure access to the U.S. market. The goal was to promote productivity, full employment and to encourage foreign direct investment. Canada also wante
37、d to strengthen the competitiveness of Canadian firms in global markets and to ensure the steady improvement of living standards. In May 1986, Canadian and U.S. governments began negotiating a trade agreement that touched off debate across Canada. By October 1987, the 20-chapter CanadaUnited States
38、Free Trade Agreement (CUSFTA) was finalized. It was signed in 1988 and came into effect on January 1, 1989. The economies of both countries became more integrated. Canadian exports to the United States have increased, especially in goods such as telecommunications equipment, and in services such as
39、financial services and consulting. The CUSFTA was the beginning of even larger regional trading blocs. 12）When was NAFTA implemented? In January 1, 1994, NAFTA replaced CUSFTA and Mexico is also included. NAFTA has created Canada, US and Mexico in the to worlds largest free trade area. And canadas e
40、xport to US and Mexico had doubled between 1994 and 2000. And attractive more forein and domestic investors for Canada.After just five years, on January 1, 1994, the CUSFTA was replaced by the North American Free Trade Agreement (NAFTA), which includes Mexico. NAFTA created the largest free trade ar
41、ea in the world. NAFTA has had some clear effects on Canadas economy. Canadian product exports to both Mexico and the United States roughly doubled between 1994 and 2000, from C$1 billion to C$2 billion to Mexico, and from C$183 billion to C$359 billion to the United States. NAFTA has made Canada mo
42、re attractive to foreign and domestic investors.9）When was the GST implemented? The Goods and Services Tax, also called GST has implemented in January 1, 1991 in Canada. It is a relatively new tax in Canada and its 7%.9) The 7% Goods and Services Tax (GST) is a relatively new tax that came into effe
43、ct in Canada on January 1, 1991.10） When did the Bank of Canada adopt inflation-rate targeting?11） When was the early 1990s recession? Canada has also hit by the recession from 1990-91 in the early 1990s. but the burst of the recession was short-lived. as fervent pre-election activity by the governm
44、ents of Canada has created growing consumer confidence and increased consumer spending has rescued canada from the recession.12）When was NAFTA implemented? 11) The recession of the early 1990s was an economic recession that hit much of the world in 1990-91. The first burst of the recession was short
45、-lived, as fervent pre-election activity by the governments of Canada created what many economists at the time saw as an economic miracle: a growing consumer confidence and increased consumer spending almost single-handedly lifted the North American economy out of recession.13）When did Canadas debt
46、to GDP ratio reach a peak in the 1990s? In 1995 the peak ratio of debt to GDP for Canada is 69.5%. and that made Canada used be the second-highest in the G8, but it was forecast that canadas debt to GDP will decline to 19.5% in 2009. And the average of the projected of all G8is 51.9%.12） As of 2008,
47、 Canadas total government debt burden is the lowest among the G8. The OECD projects that Canadas debt-to-GDP ratio will decline to 19.5% in 2009, which is less than half of the projected average of 51.9% for all G8 countries. According to these projections, Canadas debt burden will have fallen by mo
48、re than 50 percentage points from its peak in 1995, when it was the second-highest in the G8.13） When and how was Canada affected by the Asian crisis? 14） The Asia economic crisis was beginning in July 1997 in Thailand and after that most of Asia country has suffered the crisis. And Canada is also h
49、it by the crisis due to financial contagion.14）The Asian Financial Crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion. The crisis started in Thailand with the financial collapse of the Thai baht caused by the decision of the Thai government to float the baht, cutting its peg to the USD, after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven. 106
