Includes bibliographical references (p. 126-133).

Introduction / Vladimir Klyuev -- Factoring in Canadian cycles / Alejandro Justiniano -- Energy, the exchange rate, and the economy / Tamim Bayoumi and Martin Mühleisen -- Canada and the United States. Regional dimensions of the Canadian economy / Vladimir Klyuev and Rodolfo Luzio -- Canada-United States productivity gap / Roberto Cardarelli -- Effects of U.S. shocks / Iryna V. Ivaschenko and Andrew Swiston -- Budget forecasting / Martin Mühleisen ... [et al.] -- Pension system / Martin Mühleisen -- Fiscal prudence and tax reduction opportunities. Jam today or more jam tomorrow? The timing of tax cuts / Tamim Bayoumi and Dennis Botman -- Comparing efficiency gains from reducing the GST and the personal income tax / Dennis Botman -- Disintermediation and monetary transmission / Joreg E. Roldos -- Inflation targeting and macroeconomic volatility / Tamim Bayoumi and Vladimir Klyuev -- Competition in the banking system / Iryna V. Ivaschenko -- Large banking groups and financial system soundness / Gianni De Nicolò, Alexander Tieman, and Robert Corker.

Robust GDP growth, declining unemployment, low and stable inflation, and a string of fiscal and current account surpluses: these outcomes in Canada owe much to sound macroeconomic policies, as well as to a favorable external environment. This book focuses on these policies and the economy's salient features, including its close trade integration with the United States, large commodity sector, and substantial decentralization and regional diversity. It outlines what is unique about the Canadian experience and sheds light on policies and philosophies that can be applied in other economies.--Publisher's description.