Vol. 23 No. 3 September 1997

Articles:

Expected Inflation in Canada 1988-1995: An Evaluation of Bank of Canada Credibility and the Effect of Inflation Targets
David R. Johnson

Between 1988 and 1995 actual inflation in Canada fell while expected inflation did not fall as rapidly. The Bank of Canada made three attempts to signal its policy of lower inflation: a series of speeches from January to June of 1988, the announcement of inflation targets in February 1991, and the reaffirmation of inflation targets in December 1993.

This paper finds that only the 1988 speeches reduced expected inflation. There is considerable evidence that inflation targets were credible and that the 1993 change in Governor was handled so that expected inflation both remained within the target range and continued to fall.

Tobacco Control Legislation and Resource Allocation Effects
Ian J. Irvine and William A. Sims

In December 1995 Health Canada published Tobacco Control: A Blueprint to Protect the Health of Canadians which outlines the Government of Canada's new strategy to reduce tobacco consumption. Bill C-71, The Tobacco Act, was subsequently introduced, and received royal assent in April, 1997. The objective of this paper is to use input-output analysis to examine the resource allocation effects of a reduction in tobacco consumption that would likely result from this legislation. We find that significant reallocation effects may occur, and the employment effects may be more severe in the public than in the private sector.

Parental Preferences for Work and Childcare
Roderic Beaujot

Data from the 1988 Child Care Survey are used to compare the actual and preferred work and childcare patterns in families with children under six years of age. Not only do parents manage work and childcare in a variety of ways, but preferences differ considerably from daily experiences. A variety of models are operating, with some preferring more public childcare situations while others prefer part-time work or other arrangements that permit parents to look after children themselves. This suggests that policy should be flexible in supporting three types of childcare: by the immediate family, by the formal sector, and by the informal sector.

Falling Through the Cracks: Addressing the Needs of Individuals Between Employment and Retirement
L. Suzanne LeBlanc and Julie Ann McMullin

In this paper, we examine some of the public policy that provides financial support to individuals who are no longer in the labour force. We argue that these programs neglect the specific needs of individuals who are considered older by labour force standards and who are yet too young to collect full pension benefits. We show that the potential exists for these workers to fall through the cracks of public policy, leaving them with a financially insecure future. Finally, we explore some of the programs that have been used in other countries to address the needs of this group.

Gender Equal Legislatures: Evaluating the Proposed Nunavut Electoral System
Lisa Young

The article outlines and evaluates a proposal for mandated gender parity in the legislature of the new territory of Nunavut. It concludes that the proposal is consistent with democratic rights and enhances desirable relationships of representation and accountability between elector and legislator. As such, the Nunavut proposal represents an innovative reform that adapts Canadian political traditions to accommodate contemporary social cleavages. Although the results of a 1997 referendum in Nunavut preclude the implementation of the proposal in the new territory, the proposal remains a relevant contribution to policy discussions concerning the underrepresentation of women in elected office.

When in Rome ... Amending Canada's Copyright Act
Michael Rushton

Bill C-32, An Act to Amend the Copyright Act, received royal assent on 25 April 1997. This was known as "Phase II" of copyright reform, "Phase I" having been enacted in 1988. Along with a number of technical amendments, there are four substantial changes to copyright law in the bill: a clarification of exemptions for non-profit institutions such as universities and libraries; stronger rules against "parallel importation" of books; a levy on blank audio tapes, with proceeds to go to copyright collectives; and "neighbouring rights" for sound performers and their producers. There are two distinct ways of thinking about copyright law. One focuses on the natural rights of creators to the income generated by their works. The other focuses on the economic problem of designing a copyright regime which maximizes social welfare. The author suggests that while both views of copyright have been put forward in Canada throughout the debate over reform, the natural rights view had more influence on the design of Bill C-32 than the economic view.

Issues And Commentaries

Getting it Backward?: Economy and Welfare in Ontario 1985-1996
Thomas R. Klassen and Daniel Buchanan

The number of employable households on welfare remained steady in the province of Ontario from 1985-89 and then increased nearly five-fold in the early 1990s. Using labour market variables (employment levels and population) and welfare variables we show that the employment capacity of the economy expanded in 1985-89, contracting sharply during the recession of the early 1990s. Our analysis suggests that government policies sustained high caseloads in the 1980s, while in the 1990s government policies limited the number of welfare cases, notwithstanding that the employment capacity of the labour market remained low. We conclude that in the past decade welfare policies in Ontario failed to consider labour market conditions.

 


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