On the varieties of economic “stimulus”

“Stimulus” is one of those words thrown around with gay abandon by politicians, especially dutring election campaigns, thinking they know what it means. In my column for the 18 September edition of the Globe and Mail’s Economy Lab feature (in the ROB), I suggest that stimulus ought to be thought of by the effect it produces, not the means chosen. Moreover, I also point out that there is little evidence that Canada is in “recession” but is in fact in low positive growth territory, meaning that traditional stimulus is not at all the cure indicated. Rather we should be removing a number of obvious and longstanding barriers to growth. In other words it is time to think supply side rather than demand side measures.