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Canada: Selected Issues
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2006: Issue 229
Language:
English
Publication Date:
16 Jun 2006
DOI:
https://doi.org/10.5089/9781451807004.002
ISBN:
9781451807004
ISSN:
1934-7685
Pages:
24
Keywords:
ISCR; CR; exchange rate appreciation; GFM simulation; efficiency gain; gain; statistics Canada; personal income taxation; oil price; elasticity parameter; GST reduction; Inflation; Inflation targeting; Real interest rates; Output gap; Oil prices; Global
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This paper documents two aspects of Canada’s regional diversity and compares the results with those across U.S. regions. Although gradually converging, Canadian provinces exhibit a considerably diverse economic structure. The paper suggests that the reduction in macroeconomic volatility in Canada after the introduction of inflation targeting is largely attributable to the reaction of the private sector to the establishment of a credible monetary policy framework. Reduction in personal income taxation provides considerably larger efficiency gains than a reduction in the effective Goods and Services Tax (GST).
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund