Electronic Thesis and Dissertation Repository

Degree

Master of Arts

Program

Political Science

Supervisor

Dr. Adam Harmes

Abstract

The Global Financial and Economic Crisis involve complex interaction among diverse causal factors. This article seeks to ascertain the policy implications of countries’ exposure and responses to these twin crises. It does so by comparing five economies – The United States, United Kingdom, Iceland, Greece, and Canada - according to their economic performance through the crises. This comparison aims to discern why Canada’s performance surpassed that of the other four cases. The paper compares countries’ financial regulations and initial exposure to the financial crisis, as well as monetary and fiscal policy responses to mitigate the crisis and recession. It finds that monetary and fiscal stimulus were useful in mitigating economic contraction, in line with Keynesian economic theory. However, initial financial sector soundness, based on effective regulatory and corporate governance, was the key determinant of exposure to – and ultimate economic impact of - the financial crisis.

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