Category Fiscal policy
Why Dalton McGuinty Desperately Needs a U.S. Economic Recovery
Recent reports suggest that the federal government may be seeing some improvements on the deficit front due to increases in revenue. However, no such luck seems to be gracing Ontario. Indeed, the Drummond’s report forecast of continued lackluster revenue growth for Ontario due to its weak economy has placed Ontario’s government in a bind.
Driving Investment: Public or Private?
Yesterday’s Statistics Canada release on public and private investment spending intentions noted that: “Canadian public and private organizations reported that they intend to invest $394.1 billion in construction and machinery and equipment in 2012, up 6.2% from investment in 2011.” Indeed, one story I came across mentioned how important public sector capital spending was going […]
The federal budget: it’s (probably) time for a (mild) fiscal contraction
It is widely believed that the March 29 federal budget will make cuts in program spending, and the Conservative government seems to have done a very good job of preparing public opinion for them. I've written a few Economy Lab posts ([1], [2], [3]) on the topic without actually coming down on any side of […]
Thoughts on Greece
Greece seems to have slipped below the front pages. We've moved on to other things. I haven't. I don't have much to say here, but I can't say nothing. This is too important. I'm just going to record my thoughts, for whatever little they are worth. I have been Googling around, trying to understand the […]
Update on PBO Report on benefits for the elderly
Since my original post on the PBO Report (pdf), I have had a very useful email exchange with Chris Matier, the author of the Report. (It is to the PBO's credit that they really do want people to understand what they are saying, and are prepared to spend the time to help us.) This post […]
Why is CPP funded, but OAS is Pay As You Go?
(Non-Canadians: this post is for you too, even if you don't know what CPP and OAS mean. They are both pensions for old people. There is only one relevant difference between CPP and OAS, and I discuss it below.) My (very amateurish and random) reading of stuff related to my previous post on Old Age […]
When D-Day Comes, Then What?
On Wednesday, we shall see the unveiling of Don Drummond’s recommendations for the repairing of Ontario’s finances. Quite frankly, I was a little surprised that Drummond Day was not set for February 14th and advertised as a set of tough love policies to highlight the uncompromising bond between Ontario’s leaders and its people but I […]
The PBO Report on sustainability of benefits to the elderly
The Parliamentary Budget Office has released a Report (pdf) on the fiscal sustainability of benefits to the elderly. This is not my area. I don't have a lot to say on the subject. I want to say a couple of things.
Fiscal Policy, and the macroeconomics of doing nothing, redux
I don't think Simon Wren-Lewis will find this an annoying argument against fiscal policy. I hope not anyway. Let's assume that New Keynesian macroeconomics is 100% correct. What role is there for fiscal policy?
The Balance of the Federation
The Canadian Federation is an institutional arrangement whereby the constituent units are able to both cooperate and compete with jurisdictions that are both separate and coordinate. The debate over the respective roles of the federal and provincial governments has taken various forms over time with views that emphasize the centrality of the federal government along […]
Worthwhile Canadian Initiative 
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