A carefully considered economic policy of a government may in fact shield, to a certain extent, the Canadian economy from the shocks of increasing world prices of oil and resources. There are a number of policies that could be applied to achieve a stable domestic economy. Some of these points are discussed below. 1. Government Fiscal and Monetary Policies. Governments in market economies play critical roles in providing the economic conditions in which the marketplace of …showed first 75 words of 1557 total…

…showed last 75 words of 1557 total…to make investment decisions. The sustainability of fiscal policy depends not only on decisions made in the budget, but on the range of economic and social policies needed to provide higher income levels into the future. Critically, Canada needs to take advantage of opportunities to secure higher national income through trade, including with growing economies such as China and India. Canada's current fiscal position in part reflects the dividends of a positive international engagement strategy.