March 07, 2013 at 19:57 PM EST
Did a Supply Shock Cause the Canadian Recession?
It appears the answer to both questions is “yes.” The real question is why this seems so counter-intuitive. This post tries to explain some stylized facts discussed recently by Nick Rowe. He pointed out that Canada went into recession during 2008-09, despite no banking crisis. And inflation stayed stable at about 2% despite a significant [...] View the full post at: Did a Supply Shock Cause the Canadian Recession? Related posts: Canadian Economy to Avoid Recession Gates, Buffett Visit Canadian Oil Sands Project What is Driving the Canadian Dollar Higher?
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