Abstract
©1998 International Monetary Fund
Title Page
©1998 International Monetary Fund
June 1998
IMF Staff Country Report No. 98/55
Canada: Selected Issues
This Selected Issues report on Canada was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. As such, the views expressed in this document are those of the staff team and do not necessarily reflect the views of the Government of Canada or the Executive Board of the IMF. In releasing this document for public use, confidential material has been removed at the request of the member.
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International Monetary Fund
Washington, D.C.
INTERNATIONAL MONETARY FUND
CANADA
Selected Issues
Prepared by S. Dunaway, M. Cerisola, J. Cole, B. González-Hermosillo, M. Leidy, S. O’Connor, R. Salgado, S. Tokarick, Y. Li (all WHD), P. Swagel (RES), and P. Sorsa (PDR).
Approved by the Western Hemisphere Department
May 28, 1998
Contents
I. The Persistence of Unemployment in Canada
II. Recent Trends in Personal Saving in Canada
A. Measuring the Personal Saving Rate
B. Factors Affecting the Personal Saving Rate
III. Inflation Targeting: Considerations in Reducing Inflation Further
IV. Inflation Versus Price-Level Targeting
V. Macroeconomic Effects of Government Debt in Canada
VI. Health Care, Demographics, and Fiscal Sustainability
VII. The Canadian Agreement on Internal Trade: Developments and Prospects
A. Barriers to Internal Trade in Canada
B. Elements of the AIT
C. Developments Since Entry Into Force
D. Scope for Further Progress
VIII. Developments in Canadian Trade Policy
A. Introduction
B. World Trade Organization
C. Regional Trading Arrangements
D. Canadian Trade Policies
E. Foreign Investment
F. Trade Preferences for Developing Countries
IX. Official Development Assistance
Text Tables
I.
1. Stylized Facts on Unemployment and Structural Factors 1976–96
2. Capital-Labor and Capital-Output Ratios 1976–96
3. Structural Unemployment 1976:3–1996:3
II.
1. Correlation Matrix of Different Measures of Personal Saving Rates
2. Stationarity Tests
IV.
1. Price-Level Versus Inflation Targeting: Simulation Results
VI.
1. Total Health Expenditures
2. Provincial Health Expenditures and Net Debt
Charts
I.
1. Unemployment Rate
2. Capital Use
3. Cost of Capital
4. Capital-Labor Ratio
5. Capital-Output Ratio
6. Unemployment
II.
1. National Accounts Personal Saving Rate
2. National Accounts Personal Saving Rate and Inflation
3. National Accounts Personal Saving Rate Versus Real Net Worth Saving Rate
4. Different Measures of Personal Saving Rates
5. Real Net Worth Saving Rate and Per Capita Disposable Income
IV.
1. Price-Level Variation Under Inflation Versus Price-Level Targeting
V.
1. Federal Government Net Debt
2. Federal Government Fiscal Balances
3. Long-Term Interest Rates
4. Increase in GDP
5. Federal Government Interest Payments
VI.
1. Demographic Projections
2. Total Health Expenditures
3. Provincial Government Finances
4. Total and Provincial Health Expenditures
VII.
1. Canadian International and Interprovincial Trade
2. International and Interprovincial Trade, 1984 and 1996