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Introduction: Economic Policy in Canada1

Economic Theory, Analysis, Policy, and Management2

Goals for Economic Policy and Their Achievements3

Policy Conflicts and Policy-Making11

Summary and Conclusions12

Part I: The Allocation of Resources15

Chapter I: Agriculture21

Problems in Canadian Agriculture22

Current Policies Used to Alleviate the Income and Instability Problems24

Canada and World Food Supplies27

Canadian Agricultural Policies: An Overview31

Summary and Conclusions33

Chapter 2: Renewable and Nonrenewable Resources37

Resource Management Problems in the Oceans39

The Management of Canadian Fisheries43

Forestry Resources45

The Management of Nonrenewable Resources48

Mineral Resources and Mineral Policy in Canada50

Summary and Conclusions54

Chapter 3: Energy Resources59

OPEC and the Energy Crises of 1973 and 197959

World Energy Demand and Supply64

Summary and Conclusions74

Chapter 4: The Canadian Energy Scene78

Energy Demand in Canada78

Canada's Energy Supply79

Canada's Energy Policy88

Summary and Conclusions100

Appendix 4.1: Welfare Implications of Low Oil Prices103

Chapter 5: Canadian Manufacturing: Problems105

An Overview of Canadian Manufacturing106

Productivity in Canadian Manufacturing108

Foreign Investment115

Summary and Conclusions119

Chapter 6: Government Policies and Canadian Manufacturing123

Canadian Trade Policy123

Competition Policy127

Public Policy Concerning Foreign Investment129

Research and Development Policies133

Summary and Conclusions135

Chapter 7: Health and Education138

Health Care139

Reasons for Escalating Health Costs141

Policies Aimed at Promoting Efficiency in Health Care143

Recent Government Policies Affecting the Health Sector145

Expenditures on Education146

Post-Secondary Education Costs146

The Problem of Equity in Education148

Recent Government Policies Affecting Post-Secondary Education150

Summary and Conclusions151

Chapter 8: The Transportation Industry153

Transportation Policies and Their Justification153

Problems in Urban Passenger Transportation158

Intercity Passenger Transportation161

Intercity Cargo Transportation166

The Carriage of International Trade168

Summary and Conclusions174

Part II: The Distribution of Income181

Chapter 9: The Rich and the Poor: People184

The Size Distribution of Income184

Who Are the Poor?190

Causes and Possible Solutions to Poverty191

Present Programs in Income Security195

Summary and Conclusions199

Chapter 10: The Rich and the Poor: The Provinces202

Regional Disparities in Income and Employment202

Causes of Regional Disparities204

Regional Policy in Canada: An Overview209

Summary and Conclusions214

Chapter 11: The Rich and the Poor: Federal-Provincial Conflict and the Constitution218

The Economic Sources of Discontent: The Provinces219

The Economic Sources of Discontent: The Federal Government223

Centralization vs. Decentralization: Economic Viewpoint226

Proposals for Constitutional Change and/or Adjustments in Federal-Provincial Fiscal Arrangements228

Summary and Conclusions233

Part III: Stabilization Issues237

Chapter 12: Unemployment and Inflation239

Measurement of Inflation239

Unemployment and Its Measurement243

Recent Theories of Unemployment and Inflation246

Policies to Combat Inflation and Unemployment254

Summary and Conclusions260

Chapter 13: The Balance of Payments and the Canadian Dollar264

The Balance of Payments264

Fixed and Flexible Exchange Rates: An Overview269

Foreign Investment and the Canadian Economy272

Summary and Conclusions277

Chapter 14: Canadian Stabilization Policies: Past and Present280

The Freeing of the Dollar, 1950-62280

The Period of a Fixed Rate, 1962-70283

The Floating of the Dollar in 1970285

Wage and Price Controls, 1975-78287

Monetarism and the Bank of Canada291

The Post-Control Period292

Summary and Conclusions294