Canadian Fiscal Policy: Inflation versus Debt Reduction
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This paper examines Canada's fiscal policy and analyzes the links and contradictions between the pursuit of low inflation and debt reduction. The paper also considers the political-structural problems in Canada that influence fiscal policy.
From the Paper:"Throughout the free trade debates and with increasing fever in the wake of September 11 and calls for a continental perimeter, questions of Canadian autonomy and the influence of American political and economic power over Canadian policy have been raised. On the one hand, advocates of such a development speak of 'dollarization'--the adaptation of the US dollar--and other means of increasing integration.
"Opponents of these developments point to the softwood lumber dispute, US agricultural subsidies and, on an emotional level diplomatic slights and military incidents since September 11. They argue that Ottawa is increasingly surrendering policy making initiative and autonomy to the United States.
"Insightfully, however, in January The Toronto Star editorialized that focusing on the influence and role of the United States was merely a distraction. In an editorial entitled "Common Currency no Panacea" The Toronto Star argued that Canadian business and policy makers would do well to look at Canadian performance and opportunities for internal improvement rather than looking outside (i.e. to the United States) for the roots of Canada's economic problems and their solutions."
Cite this Analytical Essay:
Canadian Fiscal Policy: Inflation versus Debt Reduction (2003, October 16) Retrieved January 30, 2023, from https://www.academon.com/analytical-essay/canadian-fiscal-policy-inflation-versus-debt-reduction-38859/
"Canadian Fiscal Policy: Inflation versus Debt Reduction" 16 October 2003. Web. 30 January. 2023. <https://www.academon.com/analytical-essay/canadian-fiscal-policy-inflation-versus-debt-reduction-38859/>