Canada: 2008 Article IV Consultation-Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion

International Monetary Fund

No 2008/069, IMF Staff Country Reports from International Monetary Fund

Abstract: Canada has enjoyed high growth while adjusting smoothly to commodity price gains, currency appreciation, and, more recently, slowing U.S. demand. Monetary policy has appropriately shifted to guarding against increasing near-term downside risks. A sound fiscal framework policy has produced an enviably strong fiscal position that makes eliminating general government net debt feasible. The budgetary overperformance provides room for tax relief while maintaining small budget surpluses. To foster efficiency, the fiscal room should be used to reduce high marginal effective tax rates on capital, saving, and labor.

Keywords: ISCR; CR; hedging counterparty; monetary policy; core inflation; headline inflation; leading indicator index; currency appreciation; staff appraisal; Canadian dollar; downgrading of the staff; Commodity prices; Inflation; Income; Global (search for similar items in EconPapers)
Pages: 53
Date: 2008-02-25
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