Beigie, Carl E.
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A brilliant economic future for Canada, only if the disciplines of harsh reality are realized, and steps taken in the near term to restore reasonable balance to the economic system. The policy of monetary gradualism embarked upon six years ago. The basic goal to bring down inflation a failure. Problems with an inflation psychology. The question facing Canada, prior to a federal budget later this year is "whether the strategy of monetary gradualism is faulty." The speaker argues that the strategy makes sense, but with several constraints on the amount of time Canada has to make it work. The influence factor of the U.S. economic policies. The factor of Canada's indexation mentality. The trend of sheltering the general public from economic reality. How more inflation might be inevitable. The speaker discusses what he terms "tactical features" of the monetary gradualism strategy, summing up that Canadian economic policy from late 1975 to late 1980 was a waste. He then reviews changes since 1980 and follows that with a discussion of what might happen over the next six months, and the factors that will influence what happens during that time. He concludes with four challenges to achieving a balance between government intervention and market-place solutions. The speaker ends with some general remarks about "real issues" in Canada aside from the economic one.