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Article

Debt in Canada

A debt is something that one owes to another. While debt can take many forms, the term usually refers to money owed. In a Canadian context, debts have become an increasing concern during the past three decades. According to Statistics Canada, at the end of the second quarter of 2020, Canadian non-financial businesses, governments and households owed almost $7.1 trillion in debts. That works out to roughly $186,000 per person. (See also Public Debt.)

Article

Financial Bubbles in Canada

In economics, a bubble refers to a rapid rise in asset prices, to the point that they become disconnected from the fundamental value of the underlying asset. A change in investor behaviour is the most common cause of a bubble. When many investors rush to invest in a new technology or take advantage of low interest rates, for example, the increased demand for the asset can raise the price far above its real worth.

Article

Money in Canada

Money consists of anything that is generally accepted for the settlement of debts or the purchase of goods or services. The evolution of money as a system for regulating society’s economic transactions represented a significant advancement over earlier forms of exchange based on barter, in which goods and services are exchanged for other goods or services. Canadian money has its roots in the Indigenous wampum belts of the East, the early currencies of European settlers and the influence of the United States.

Click here for definitions of key terms used in this article.

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.

Article

Gross Domestic Product (GDP)

Gross domestic product (GDP) refers to the value of all final goods and services produced within a country by all factors of production, regardless of their ownership, usually during one year. Statistics Canada switched to GDP in their calculations of national production in 1986 to facilitate comparisons with other international statistics as most other countries used GDP. Despite its limitations, GDP is considered the best and most concise overall measure of economic performance. It is often used to calculate changes in a country’s standard of living. The growth of inflation-adjusted GDP (known as real GDP) is an important economic performance indicator. The tracking of GDP over time is used as evidence of business cycle performance, as traditionally two consecutive quarters of negative real GDP growth are referred to as a recession. As well, the distinction is often made between the growth of total real GDP (known as extensive growth) and the growth of real GDP per person (intensive growth), with intensive growth often used as an indicator of welfare per person in an economy.

collection

Economics in Canada

Economics is a discipline that studies the production, distribution and consumption of goods and services. Economists study these issues from the perspective of macroeconomics or microeconomics. This collection brings together articles related to the history and study of economics in Canada.

Editorial

Women on Canadian Banknotes

The following article is an editorial written by The Canadian Encyclopedia staff. Editorials are not usually updated.

Though Queen Elizabeth II has appeared on the $20 bill since she was eight years old, identifiable Canadian women have only appeared on a Canadian banknote once. In 2004, the statue of the Famous Five from Parliament Hill and Olympic Plaza in Calgary, and the medal for the Thérèse Casgrain Volunteer Award were featured on the back of the $50 note. They were the first Canadian women to appear on our currency. However, in 2011, they were replaced by an icebreaker named for a man (see Roald Amundsen). The new bill was part of a series of notes meant to highlight technical innovation and achievement, but the change sparked controversy. Other than the image of a nameless female scientist on the $100 note issued in 2011, and two female Canadian Forces officers and a young girl on the $10 bill issued in 2001 , Canadian women were absent from Canadian bills.

On 8 March 2016, International Women’s Day, the Bank of Canada launched a public consultation to choose an iconic Canadian woman who would be featured on a banknote, released in the next series of bills in 2018. More than 26,000 submissions poured in. Of those, 461 names met the qualifying criteria, and the list was pared down to a long list of 12 and finally a short list of five. The final selection will be announced on 8 December 2016.

But how did we get here?