ECON 319 Chapter Notes - Chapter 1-2: The Conference Board, Shortage
9 Feb 2017
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Crisis and intervention - lessons from the financial meltdown and recession. Lesson 1 sound fiscal policy is key to keeping the economy afloat in hard times (pg. 21-38) Canada entered the financial crisis in a very strong fiscal position relative to other nations. By the end of 2007-08 fiscal year, canadians were happily sitting atop a nearly. billion annual surplus, the 11th federal surplus in as many years. A sound fiscal framework can play a vital role in supporting a strong economic performance when a recession hits. Tax reform is only one part of the fiscal puzzle. However, politicians have tended to fo(cid:272)us o(cid:374) the (cid:862)here a(cid:374)d (cid:374)ow(cid:863) rather tha(cid:374) o(cid:374) the (cid:272)ou(cid:374)tr(cid:455)"s future e(cid:272)o(cid:374)o(cid:373)i(cid:272) well-being. Health care currently absorbs about 41% of total program spending among the provinces collectively. Government stimulus through aggressive fiscal and monetary policy intervention is a powerful instrument for restoring economic growth, but it also has its limits.
