The Economy

In this section

  • 4. Overview of Economics
    This section provides a comprehensive introduction to economics, focusing on both microeconomic and macroeconomic environments and their impact on financial markets. Learn key economic terms and indicators that influence investment decisions.
    • 4.1 Introduction
      Discover the impact of economic news and events on markets and individual investments. Learn about key economic variables and their significance in making informed investment decisions.
    • 4.2 Defining Economics
      Explore the fundamental concepts and principles of economics, including market equilibrium and the impact of consumer choices on the economy.
      • 4.2.1 Microeconomics And Macroeconomics
        Explore the fundamentals of microeconomics and macroeconomics, including their key areas of focus, main concerns, and differences.
      • 4.2.2 Decision Makers
        An in-depth exploration of the primary decision Makers in an economy including consumers, businesses, and governments, and how their interactions influence economic outcomes.
      • 4.2.3 Market
        Comprehensive guide to understanding market dynamics including demand, supply, and market equilibrium, tailored for Canadian Securities Course exam preparation.
    • 4.3 Measuring Economic Growth
      Learn how to measure economic growth, including the processes for tracking Gross Domestic Product (GDP) and productivity gains within an economy.
      • 4.3.1 Gross Domestic Product
        Understand Gross Domestic Product, its calculation methods, significance, and interpretation in Canadian securities context.
      • 4.3.2 Productivity And Determinants Of Economic Growth
        An in-depth look into the factors that influence productivity and contribute to economic growth, specifically focusing on GDP, technological advances, population growth, and human capital improvements.
    • 4.4 Business Cycle
      An in-depth look at the business cycles, their phases, and economic indicators used to analyze current and long-term economic growth.
      • 4.4.1 Phases Of Business Cycle
        A detailed guide to understanding the different phases of the business cycle: Expansion, Peak, Contraction, Trough, and Recovery, with insights into their characteristics and impacts on the economy.
      • 4.4.2 Economic Indicators
        Understand the different types of economic indicators: leading, coincident, and lagging. Learn their applications, along with real-world examples and their significance in forecasting and analyzing economic trends.
      • 4.4.3 Identifying Recessions
        Learn how to identify recessions based on depth, duration, and diffusion criteria as defined by Statistics Canada. Explore examples of economic slowdowns and recessions in Canada.
    • 4.5 Labour Market
      Explore the Labour Market by comparing and contrasting labour market indicators and types of unemployment in Canada.
      • 4.5.1 Labour Market Indicators
        Understand the key indicators of labour market activity: participation rate and unemployment rate. Learn with Canadian Securities Course certification preparation guide.
      • 4.5.2 Types Of Unemployment
        Explore the various types of unemployment, including cyclical, seasonal, frictional, and structural unemployment. Understand their definitions, causes, and implications for the economy.
    • 4.6 Role Of Interest Rates
      A comprehensive exploration of the critical role that interest rates play in the economy, affecting consumers, businesses, credit demand and supply, as well as the broader economic environment.
      • 4.6.1 Determinants Of Interest Rates
        Comprehensive guide for understanding the determinants of interest rates, including factors such as demand and supply, default risk, foreign interest rates, central bank policies, and inflation.
      • 4.6.2 How Interest Rates Affect Economy
        Comprehensive guide examining the multifaceted effects of interest rates on economic growth, savings, and investments.
      • 4.6.3 Expectations And Interest Rates
        Learn about the relationship between market expectations and interest rates in the context of investment decisions. Understand how inflation impacts nominal and real interest rates with detailed examples and mathematical formulas.
    • 4.7 Impact Of Inflation
      Explore the impact of inflation on the economy, including its effect on purchasing power, investments, and the real value of money.
      • 4.7.1 Measuring Inflation
        Understand how inflation is measured using the Consumer Price Index (CPI), its impact on the economy, and how various economic factors are influenced by changing inflation rates.
      • 4.7.2 Causes Of Inflation
        Discover the fundamental causes of inflation, including demand-pull and cost-push inflation. Understand how supply and demand conditions impact price levels in the economy.
      • 4.7.3 Deflation And Disinflation
        Understand the concepts of deflation and disinflation, their distinctions, and their impact on the economy. Dive deep into the cost implications and the relationship between inflation and unemployment through the lens of the Phillips Curve.
    • 4.8 International Finance And Trade
      Explore how international finance and trade influence Canada’s economy through the balance of payments, exchange rates, and interactions with global markets.
      • 4.8.1 Balance Of Payments
        An in-depth overview of the balance of payments, including its core components: the current account and the capital and financial account, and their impact on economic transactions between a country and the rest of the world.
      • 4.8.2 Exchange Rate
        In this section, we discuss the exchange rate, its impact on the Canadian economy, and the key determinants influencing currency values.
    • 4.9 Summary
      Comprehensive summary of economic fundamentals related to markets, GDP, business cycles, interest rates, inflation, and financial indicators. Important guidelines for understanding economic behavior in the Canadian context.
  • 5. Economic Policy
    Learn about fiscal and monetary policies, their implementation, and their impact on the economy. Understand the roles of the Bank of Canada and the challenges faced by governments.
    • 5.1 Introduction
      Overview of the role of fiscal and monetary policy in investment decisions, highlighting the responsibilities of the federal government and the Bank of Canada.
    • 5.2 Fiscal Policy
      Comprehensive guide to understanding fiscal policy, its components, and its impact on economic performance in the context of Canadian federal and provincial governments.
      • 5.2.1 Federal Budget
        A comprehensive overview of the federal budget in Canada including government's revenue sources, budget positions, and the impact on national debt and capital markets.
      • 5.2.2 How Fiscal Policy Affects Economy
        Explore how fiscal policy influences the Canadian economy with insights into government spending, taxation, and key economic theories.
    • 5.3 Bank Of Canada
      Understand the roles and functions of the Bank of Canada, governance structure, and its key responsibilities in managing Canada's financial system.
      • 5.3.1 Role And Functions Of Bank Of Canada
        Understand the roles and functions of the Bank of Canada, including its main responsibilities such as monetary policy, financial system stability, currency issuance, and funds management.
    • 5.4 Monetary Policy
      An in-depth look at how the Bank of Canada implements and conducts monetary policy, promoting economic stability through inflation control targets and financial system management.
      • 5.4.1 Canada’s Monetary Policy Framework
        A comprehensive guide on the Bank of Canada’s monetary policy framework, focusing on the key tools of interest rates and money supply, and how these are used to manage inflation, demand, and economic stability.
      • 5.4.2 Implementing Monetary Policy
        Detailed guide on how the Bank of Canada implements monetary policy using various tools such as the target overnight rate, open market operations, and drawdowns and redeposits.
    • 5.5 Challenges Of Government Policy
      Explore the critical challenges faced by governments when implementing fiscal and monetary policies and their far-reaching implications for the economy.
    • 5.6 Summary
      Comprehensive summary and insights on economic policies, fiscal and monetary strategies, and their impact on Canadian economy. Review vital concepts, challenges, frequently asked questions, and key takeaways for an effective understanding.
Thursday, September 26, 2024