Why Was Canada Exempt from the Financial Crisis?

EconFocusEcon Focus
Fourth Quarter 2013

Canada has avoided crises for 180 years, while we have been prone to them. Can we recreate its stability here?

As the worst financial crisis in generations hit the United States in 2007 and 2008, Canada was a pillar of resilience.

No Canadian financial institutions failed. There were no government bailouts of insolvent firms (just a couple of lending programs to address market volatility relating to problems in the United States). Canada was the only G-7 country to avoid a financial crisis, and its recession was milder than those it experienced in the 1980s and early 1990s. For the last six years, the World Economic Forum has ranked Canada first among more than 140 countries in banking stability.

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