Slow Growth, Unemployment and Debt: What Happened? What Can We Do?

Pierre Fortin ()

No 23, Cahiers de recherche CREFE / CREFE Working Papers from CREFE, Université du Québec à Montréal

Abstract: 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 future of the economy and of the economic research. A three-part macroeconomic policy package is put forward, based on fiscal discipline, cooperative monetary discipline, and a fixed exchange rate with the U.S. dollar.

Maintenant presque débarassé de l'inflation, le Canada est encore aux prises avec un progès très lent de sa productivité, un taux de chômage élevé et persistant et des taux d'endettement public et extérieur croissants. Le présent essai passe en revue les causes et les conséquences identifiables de ces évolutions récentes et en tire quelques enseignements utiles pour l'avenir de l'économie et de la recherche économique. Un plan d'action macroéconomique en trois points est enfin proposé: discipline budgétaire, action concertée pour le maintien de la stabilité des prix, et taux de change fixe par rapport au dollar américain.

Keywords: Unemployement; deficits; growth; Canada (search for similar items in EconPapers)
JEL-codes: E6 (search for similar items in EconPapers)
Pages: 40 pages
Date: 1993-12
References: Add references at CitEc
Citations:

Published, T.J. Courchesne (dir.), Stabilization, Growth, and Distribution: Linkages in the Knowledge Era, Bell Canada Papers on Public Policy 2, John Deutsch Institute, Queen's University, Kingston, pages 67-108, 1994

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Persistent link: https://EconPapers.repec.org/RePEc:cre:crefwp:23

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