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The inflation rate in Canada and United States is at the highest ever in over 30 years at 8.1% and 9.1% respectively.
Using concepts discussed in this course:
a) Freely discuss the geopolitical and economical implication of this in the global economy and how both nations are trying to control this inflation.
b) Despite the high inflation in USA, the US dollars remains very stable and is appreciating against other currencies (eg Euro, Yen etc). Explain the reason behind this anomaly and the implication on international trade between any country of your choice and the USA.
c) Briefly explain the difference between fiscal policy and monetary policy of a country and what are both instruments used for?
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