Economics Newsletter – Week of March 8th 2021

Written By: Amit Shteyer & Hannah Lobbezoo

Canada’s Economy at a Glance

Economics Society News, Events, and Articles

News:

Keep an eye out for UW Econ merch coming soon and future Econ Soc events!

Buy your UW Econ hoodies! Only available until March 17th.

Keep an eye out for our Alumni Panel, coming up on March 23rd!

Are you a first year thinking of declaring an Econ major? Come join our panel on March 25th!

All links in our Linktree (Instagram bio)

News and Noteworthy

David Rosenberg says Canada’s Housing Market in a ‘huge bubble’
Canada’s housing market has seen major price hikes in the past year. Houses in Toronto region are selling for over $1 million on average for the first time and suburban house prices have increased by over 20% since February 2020. Read More.

Bank of Canada keeps its food on the gas, but hints at changes to come
The Bank of Canada has admitted to underestimating the Canadian economy’s ability to withstand the second COVID wave. As consumers and businesses adapt to the new norm, the Bank of Canada is reconsidering its low first quarter predictions and getting ready to take its foot off the gas. Read More.

Canada to benefit from U.S rebound, says OECD
The OECD is expecting output levels to be higher than pre-COVID by the middle of 2021 and has raised its GDP growth forecasts. It states that strong fiscal support in the U.S will result in spillover benefits for both Canada’s and Mexico’s economies. Read More.

SPAC’d out: Everything you need to know about the next hyped-up investment fad
Investors are warning about a new hyped up investment, special purpose acquisition companies (SPAC), that is veering towards a bubble. These investments pool money to purchase business and ideas and have offered over 1000% return for some of their founders, regardless of the actual performance of the financial vehicle. Read more.

Still haven’t learned what NFTs are? Well, this one just sold for $69M
Blockchain has entered the art world. A digital artwork created by American artist, Mike Winkelman, sold for nearly 70 million dollars. The artwork is a form of a new digital asset, non-fungible token (NFT), which is authenticated by blockchain ensuring its originality. Read more.

Bank of Canada holds interest rate steady, keeps other stimulus taps fully open for now
The Bank of Canada has continued, and will continue to maintain its record low rate of 0.25 over the next 2 years. The bank has also continued to buy up bonds to stimulate the economy, even while prospects for the future improve. Read More.

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