U.S. Investments in Canada and Canadian Interest Rates
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This paper explores the relationship between the U.S. venture capitol arriving in Canada every year as a way to prove that the rising Canadian interest rates lured American investors in lending to Canada. The paper discusses how although the United States and Canada have always shared a close economic relationship, integration into the U.S. economy through higher U.S. investments in the Canadian market mark a rise in prime interest rates as determine by the Bank of Canada. The paper explains that what results is further proof that rising interest rates signal a surplus of foreign investment. the paper relates that with this knowledge, the Bank of Canada lowered prime rates in its attempt to curb the inflation that naturally comes with such a surplus of foreign capitol. The paper notes that remaining questions linger about future investments after the 2008 rate decrease.
Cite this Analytical Essay:
U.S. Investments in Canada and Canadian Interest Rates (2008, December 01) Retrieved March 28, 2020, from https://www.academon.com/analytical-essay/us-investments-in-canada-and-canadian-interest-rates-140918/
"U.S. Investments in Canada and Canadian Interest Rates" 01 December 2008. Web. 28 March. 2020. <https://www.academon.com/analytical-essay/us-investments-in-canada-and-canadian-interest-rates-140918/>