September 2011
IS HARPER PREPARED TO PUT UP $40 BILLION OF STIMULUS?
Attention is now being focused on EURO zone leaders to take strong and credible action to strengthen the capital of private sector banks in Europe, ensure confidence in bank liquidity and interbank credit, and guarantee support for sovereigns’ debt. This won’t be easy and the situation is only going to get worse.
There is now a good chance that the advanced economies are about to enter another recession and, if not, certainly a protracted period of slow growth and high unemployment.
Read MoreA LOW TAX PLAN BUT DEFINITLY NOT GOOD TAX POLICY
“We have a low-tax plan for jobs and growth and the resolve to stay the course. The Next Phase of Canada’s Economic Action Plan will preserve this country’s advantage in the global economy.” (Minister of Finance, August 2011: http://www.fin.gc.ca/n11/11-069-eng.asp).
Read MoreDon’t Bet on a Surplus in 2014-15 or 2015-16
The EURO area, and by extension the European Union, is confronting a political crisis, a banking crisis, a sovereign debt crisis, and an economic growth crisis. Even in the best of worlds, growth in the 17-nation EURO zone area will be non-existent in the second half of the year and the prospects for 2012 and 2013 don’t appear much better. Bond markets are now betting that the EURO area will not survive without a major policy turnaround. The potential for global contagion is immense and the consequences would be severe.
Read MoreSEPTEMBER 6TH BRIEFING FOR JOURNALISTS ONLY: A FEW QUESTIONS
On September 2nd, the Department of Finance announced that there would be a telephone briefing on the upcoming meeting of G-7 and G-8 Finance Ministers and Central Bank Governors on September 6th. This briefing is for journalists only.
We are not journalists, and therefore are not invited to participate in the briefing. It is unfortunate that the government would not allow this briefing to be available to the general public. Nevertheless we do blog on public policy on a regular basis and do submit pieces to the print media, which have been published.
Read MoreWE NEED A NEW “ECONOMIC ACTION PLAN” FOR FISCAL SUSTAINABILTY, ECONOMIC GROWTH AND JOB CREATION, NOT A REPEAT OF 2008
In August, Mr. Flaherty met with his advisory panel as well as selected business representatives and academics to discuss key issues facing Canada and “to shape the policies and initiatives of the next phase of Canada’s Economic Action Plan”.
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