Canadian policymakers currently adhere to the view that the benefits of establishing and maintaining price stability (near-zero inflation) are "many and large" and that the costs are "small and temporary". This paper, in contrast, warns about the lightness of zero-inflation optimism. Evidence...

Canada has now almost eliminated inflation, but it is still struggling with a slow productivity growth, high and persistent unemployment, and large fiscal and external deficits. This essay reviews the identifiables causes and consequences of this evolution, and draws a number of lessons for the...

Under current projections of economic growth and fiscal policy for the next two years, the probability that the federal government will achieve its stated goal of bringing down the fiscal deficit to 3 per cent of GDP by 1996 is almost zero. Four types of changes could improve the odds that the...

En considérant la partie non anticipée des annonces monétaires de M1, les changements du taux d'escompte et les changements du taux des avances à un jour comme des signaux potentiels de la politique monétaire canadienne, nous vérifions l'existence d'un impact significatif de ces signaux...