The Bank of Canada and the U.S. Federal Reserve both began raising interest rates in March, 2022 and both tightened monetary policy. In Canada, that’s pushed the economy to the edge of a recession, while the U.S. economy is defying gravity. …The picture is clearest when you look at gross domestic product. Canadian GDP contracted between April and June then stalled through the summer and early fall. In the US, GDP grew at an annualized rate of 2.1% in the second quarter and accelerated to a whopping 4.9% in the third quarter. …The key reasons for the different directions include: …Canadians spend about 15 cents of every after tax dollar [servicing debt], and Americans were spending about 10 cents. …American homebuyers typically take out 30-year mortgages… In Canada, most mortgages reset every five years. That means rising interest rates are felt relatively quickly. …and low productivity is a drag on Canada’s economy. [to access the full story a Globe & Mail subscription is required]