The Bank of Canada is changing the sophisticated models it uses to forecast the economy because those models failed to predict "the deep and persistent aftershocks of the global financial crisis" of 2007-2009. This is a perfect example of the quote from Keynes that "Economics is a science of [...]
Anti-trade and anti-globalization positions helped elect Donald Trump, and economists' traditional arguments for free trade are being ignored. In fairness to the anti-traders, the outcomes of extended trade (especially with China) have left many workers in manufacturing worse off. In teaching about the gains from trade, how do we [...]
Statistics Canada released a nice 4 minute animated video showing how GDP is calculated using the value-added approach. It begins with the definition of GDP as "The value of output less intermediate consumption plus any taxes less subsidies on products not already included in the value of output." [...]
