Canadian Monetary and Fiscal Policies Essay Example | Topics and Well Written Essays - 1750 words

Canadian Monetary and Fiscal Policies - Essay Example Despite the challenges that have characterized the West in the recent past, the last two years have not really been a sad affair for Canada. Despite the economic recession that affected most countries across the world, the recovery process in the case of Canada has rather been a positive affair often realized from the economic trend in the country. In these post recession days, Canada has evidenced the highest economic growth rates in the G-7 economic block. Presently, Canada’s fiscal position is certainly the strongest amongst the G-7 countries and this helps to confirm the proper economic policies of the Canadian government in the recent past. The focus of the government in this regard is to ensure that the country remains attractive and economically stable for the purposes of investment and economic realization. The government’s Economic Action Plan, Budget 2011 was designed in a way to enhance and promote the financial strength of the families in Canada, to create a competitive tax system that attracts investment, to promote innovation and to bond the emerging trade relations between Canada and other countries. In any case, it has been realized that most of these policies have actually been realized in the process of economic recovery and the evidence relates to the fact that the country ranks the top in several economic respects across the world. Through the Economic Action Plan, the government has instituted various policies ad measures that have greatly benefited the country and continue to create positive economic impact on the face of the country. Through the plan, the government is committed to encourage the growth of skilled workforce in the economy through apprenticeships and skilled trades which are indeed churning out thousands of skilled works into the Canadian economy. Presently, the government invests over $40 million annually towards the new Apprenticeship Competition Grant (ACG) (Pasma 2012). This is in addition to the Apprentic eship Incentive Grant (AIG) which has been in existence for several years. Through these programs, it is realized that over 20,000 apprentices are rolled into the economy and get certified after the required period. The Canadian economic success has over the last two years largely depended on the country’s ability to export goods to other countries. While most countries in the West are trying to re-strategize and recover from the detrimental effects of the economic recession, the government of Canada’s main preoccupation has always been the need to create the positive and favorable economic climate in order to enhance and improve the balance of trade for the country. In this respect, Canada has an advantage over the rest of the countries owing to the various policies that have always existed and have greatly been advocated by the government in the last two years. For instance, the Canadian financial system is certainly the strongest in the world. The institutions and h ousehold in Canada are also some of the financially stable units in the industrialized world. All these positivities are basically a consequence of the economic orientation which the Canadian government has always pushed for over the decades. Upon the realization of the critical effects of the financial meltdown, the government was at the forefront in enhancing its fiscal measures so as to boost the growth of the economy and create a stronger economy that can easily withstand the strong waves of the economic