Chapter 8

http://www.canada.com/business/Inflation+rate+slows+unexpectedly+March/2942390/story.html

Summary:
The consumer price index rose 1.4% in March from a year earlier in Canada, following a 1.6% annual pace the month before. The Bank of Canada decided that they would keep its trendsetting interest rate at 0.25%. The reason for the record low 0.25% interest rate was to aim to pull the country out of recession by encouraging spending by both consumers and businesses. The central bank said that the first quarter economic growth will be near 6%, the fastest pace in 11 years. The overall inflation is forecast to reach 2.4% later this year. Consumer spending is expected to grow strongly for the remainder of the year and the next. The consumer prices rose in all provinces in the 12 months to March. The drive from gasoline pushed the prices up.

Connection:
The connection in the chapter is the monetary policy. Monetary policy is an economic stabilization tool that operates through changes in the money supply. When the money supply changes, the interest rate changes as well. The article talks about Canada’s interest rate at a record low 0.25%. This is a way to encourage more spending to boost up the inflation. As the article stated, the inflation rate is projected to reach 2.4% compared to the target of 2%. Canada wants to leave the interest rate for now to drive the economy up to get ready for July.

Reflection:
I think that this is great for Canada. This will definitely boost our economy and make it stronger than before. As we get closer to our target point, the interest rate will begin to grow. This way it will cause us consumers to spend less. Hopefully this will slow our inflation down also. The inflation rate has already been projected at a higher percentage than the targeted. It will turn down consumers if the interest rate continues to grow. As inflation rates increase, however, it does create more opportunity for jobs. This is like a double-edged sword.

Ch 5 Blog

http://www.canada.com/health/Canadian+infant+mortality+among+worst+group+Study/2043798/story.html

Summary:
The article talks about Canada’s high infant mortality rate. Canada has one of the highest infant mortality rates in a developed country. Five deaths out of 1,000 live births recorded in 2006, and are unable to match the success of the majority of the other countries which have managed to improve their infant mortality rate. The article states that the high rate of infant mortality may be caused by a high number of premature births. Canada follows the World Health Organization’s definition of live births, any baby that manages to take one breath, whereas other countries like Sweden don’t register unless they have a reasonable chance of survival.

Connection:
The connection between the chapter and the article is quality of life. Infant mortality is an indicator of the quality of life in a country. It has a lot to do with the health equality in the country. However, Canada records the World Health Organization’s definition of infant mortality, which states that any baby that manages to take a breath, even if the prospects for survival are slim are recorded, whereas other countries have different stands for live births. We cannot use this indicator to determine the quality of life because different countries have different definitions and the rate is for the whole country, but does not specify on which part of the country has a high infant mortality rate.

Reflection:
I find that Canada and USA have a high infant mortality rate even though they are some of the more developed countries. Is it that we don’t spend enough on our healthcare? Canada cannot find a way to decrease the infant mortality rate despite the government spending a lot of money into healthcare. There are many other situations which can cause this to happen. For example, it could be that the mother of the baby did not have a healthy lifestyle, which caused the baby to inherit some sort of disease that is harmful to them.