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Introduction: Economic Policy in Canada 1

Economic Theory, Analysis, Policy, and Management 2

Goals for Economic Policy and Their Achievements 3

Policy Conflicts and Policy-Making 11

Summary and Conclusions 12

Part I: The Allocation of Resources 15

Chapter I: Agriculture 21

Problems in Canadian Agriculture 22

Current Policies Used to Alleviate the Income and Instability Problems 24

Canada and World Food Supplies 27

Canadian Agricultural Policies: An Overview 31

Summary and Conclusions 33

Chapter 2: Renewable and Nonrenewable Resources 37

Resource Management Problems in the Oceans 39

The Management of Canadian Fisheries 43

Forestry Resources 45

The Management of Nonrenewable Resources 48

Mineral Resources and Mineral Policy in Canada 50

Summary and Conclusions 54

Chapter 3: Energy Resources 59

OPEC and the Energy Crises of 1973 and 1979 59

World Energy Demand and Supply 64

Summary and Conclusions 74

Chapter 4: The Canadian Energy Scene 78

Energy Demand in Canada 78

Canada's Energy Supply 79

Canada's Energy Policy 88

Summary and Conclusions 100

Appendix 4.1: Welfare Implications of Low Oil Prices 103

Chapter 5: Canadian Manufacturing: Problems 105

An Overview of Canadian Manufacturing 106

Productivity in Canadian Manufacturing 108

Foreign Investment 115

Summary and Conclusions 119

Chapter 6: Government Policies and Canadian Manufacturing 123

Canadian Trade Policy 123

Competition Policy 127

Public Policy Concerning Foreign Investment 129

Research and Development Policies 133

Summary and Conclusions 135

Chapter 7: Health and Education 138

Health Care 139

Reasons for Escalating Health Costs 141

Policies Aimed at Promoting Efficiency in Health Care 143

Recent Government Policies Affecting the Health Sector 145

Expenditures on Education 146

Post-Secondary Education Costs 146

The Problem of Equity in Education 148

Recent Government Policies Affecting Post-Secondary Education 150

Summary and Conclusions 151

Chapter 8: The Transportation Industry 153

Transportation Policies and Their Justification 153

Problems in Urban Passenger Transportation 158

Intercity Passenger Transportation 161

Intercity Cargo Transportation 166

The Carriage of International Trade 168

Summary and Conclusions 174

Part II: The Distribution of Income 181

Chapter 9: The Rich and the Poor: People 184

The Size Distribution of Income 184

Who Are the Poor? 190

Causes and Possible Solutions to Poverty 191

Present Programs in Income Security 195

Summary and Conclusions 199

Chapter 10: The Rich and the Poor: The Provinces 202

Regional Disparities in Income and Employment 202

Causes of Regional Disparities 204

Regional Policy in Canada: An Overview 209

Summary and Conclusions 214

Chapter 11: The Rich and the Poor: Federal-Provincial Conflict and the Constitution 218

The Economic Sources of Discontent: The Provinces 219

The Economic Sources of Discontent: The Federal Government 223

Centralization vs. Decentralization: Economic Viewpoint 226

Proposals for Constitutional Change and/or Adjustments in Federal-Provincial Fiscal Arrangements 228

Summary and Conclusions 233

Part III: Stabilization Issues 237

Chapter 12: Unemployment and Inflation 239

Measurement of Inflation 239

Unemployment and Its Measurement 243

Recent Theories of Unemployment and Inflation 246

Policies to Combat Inflation and Unemployment 254

Summary and Conclusions 260

Chapter 13: The Balance of Payments and the Canadian Dollar 264

The Balance of Payments 264

Fixed and Flexible Exchange Rates: An Overview 269

Foreign Investment and the Canadian Economy 272

Summary and Conclusions 277

Chapter 14: Canadian Stabilization Policies: Past and Present 280

The Freeing of the Dollar, 1950-62 280

The Period of a Fixed Rate, 1962-70 283

The Floating of the Dollar in 1970 285

Wage and Price Controls, 1975-78 287

Monetarism and the Bank of Canada 291

The Post-Control Period 292

Summary and Conclusions 294