[OC] Canadian investments abroad vs Foreign investments in Canada, and its correlation with CPI, (not-an-economic expert who’s trying to understand what’s wrong with the Canadian economy)
[OC] Canadian investments abroad vs Foreign investments in Canada, and its correlation with CPI, (not-an-economic expert who’s trying to understand what’s wrong with the Canadian economy)
You might see a modest increase in capital outflows (and a decline in foreign inflows) when inflation falls because domestic interest rates would usually be falling at the same time, leading to an increase in net short-term capital outflows.
DZello on
My take is that competition from the US is hard. Why invest in Canada when you have the biggest economy just south of it?
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Every time the CPI goes down, Canadian investments abroad increase, except recently…
Hey guys, I want to understand what’s wrong with the Canadian economy using data from statistics Canada and a plot generator.
Source: Statistics Canada
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You might see a modest increase in capital outflows (and a decline in foreign inflows) when inflation falls because domestic interest rates would usually be falling at the same time, leading to an increase in net short-term capital outflows.
My take is that competition from the US is hard. Why invest in Canada when you have the biggest economy just south of it?