Article Abstract:
The transition in Canada towards structural and institutional changes that will help create an environment conducive to economic growth should focus on the regional economies and the labor market. For the economy to make a successful adjustment, there are four prerequisites: active programs in the labor market; a new attitude among labor, employers, and government; a consensus that delegates to economic agents such as business and labor the responsibility for programs affecting the labor market; and a set of fiscal and monetary policies that support a healthy economy. The economies of regions with high unemployment must be strengthened by diversifying the regional industrial base. Labor market policies must promote flexibility in the workplace by creating a mobile, flexible labor pool that is able to acquire new knowledge and skills in order to be able to undertake new jobs.
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Article Abstract:
The experience of the Canadian government during the 1980s illustrates the fact that efforts to reduce inflation through a sole reliance on monetary policy has substantial costs. The Economic Council of Canada in its 27th Annual Review promotes a strategy for reducing unemployment below 7% to 8% while containing inflation. This goal requires creating new institutional arrangements while the government pursues a policy of deficit reduction. The new institutional arrangements necessitate a credible program for achieving inflation goals, a coordinated inflation goal, a coordinated fiscal policy, wages that are more responsive to market forces, and a social consensus. The success of the anti-inflation policies require that the objectives of the Bank of Canada be feasible and clearly understandable and that all levels the public sector make a greater effort to control inflation.
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Article Abstract:
In a research paper for the Economic Council, economist Harry M. Kitchen states that certain municipal services can be most cost-effectively delivered by private companies. For the study, costs of delivering services including urban transit, water, and electricity in Ontario are compared between public and private contractors. It appears cost savings may be improved through the use of the private sector, particularly in the areas of electricity and urban transit. Inadequate pricing for the cost of delivering specific services is discussed. The increase of competition realized through private contractors also increases cost efficiency and performance.
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