Topic:spending habits of the Canadian public
Many commentators, including high officials of the bank of Canada, have blamed the spending habits of the Canadian public for high interest rates. Are these commentators right?
From 1981 to 2005, Canada has experienced a sharp drop in private savings rates. Table 1 shows the time series of “Household saving rate” variable in Canada for this particular period. Select the arguments that you find most relevant and work them out convincingly. Your argument should be understandable for persons with an academic thinking level, who is interested in macroeconomics but not necessarily familiar with the specifics of the “Supply and Demand of Loanable Funds” model..