Canada: Selected Issues

International Monetary Fund

No 2006/229, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper documents two aspects of Canada’s regional diversity and compares the results with those across U.S. regions. Although gradually converging, Canadian provinces exhibit a considerably diverse economic structure. The paper suggests that the reduction in macroeconomic volatility in Canada after the introduction of inflation targeting is largely attributable to the reaction of the private sector to the establishment of a credible monetary policy framework. Reduction in personal income taxation provides considerably larger efficiency gains than a reduction in the effective Goods and Services Tax (GST).

Keywords: ISCR; CR; exchange rate appreciation; GFM simulation; efficiency gain; gain; statistics Canada; personal income taxation; oil price; elasticity parameter; GST reduction; Inflation; Inflation targeting; Real interest rates; Output gap; Oil prices; Global (search for similar items in EconPapers)
Pages: 24
Date: 2006-06-16
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Citations: View citations in EconPapers (2)

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