The Dutch disease

As the article mentions (and as discussed in class), national savings is an important macroeconomic variable. Make a solid case on whether Canadian national saving is at an optimal level (your sources cannot be older than 2020!). Be specific: are you analyzing private or public savings, or both? Explain your point of view properly and make sure to back it up with data. Here are other questions you need to answer: (i) how does Canada compare to other countries in terms of savings (Again be specific: are you looking at private savings, public savings, or both)? (ii) how would a change to national savings in Canada affect the Canadian Market of Loanable Funds, namely interest rates in Canada?

Sample Solution