The OIL-PRICE Collapse :Is it Bad for Canada?
Over the last 18 months the price of oil has decreased by more than 70 percent, falling from about $110 a barrel in June 2014 to about $30 a barrel by the end of January 2016. A drop of this size in the price of such an important commodity has significant effects in the economies of both oil-importer and oil-exporter countries. Indeed, as a result of such a rapid and sizeable change in relative prices, some countries and sectors might be big winners while others might be big losers. As an important producer and exporter of oil, what’s the impact for Canada? Was the high price of oil definitely “good” for Canada as many then suggested? Is the current low price of oil definitely “bad” for Canada?
Write a short academic paper on the impact of the fall in oil-prices on the Canadian economy. What policies could be implemented to avoid the negative externalities of commodity-cycles? Your essay must have a clear thesis and include a brief introduction and conclusion. Your paper must be about 4000 words in length (about 16 double-space pages, without counting the references) and make reference to at least eight academic works on the subject.