The COVID-19 pandemic revealed that governments can quickly respond to a fiscal crisis without becoming mired in unproductive wrangling. But the pandemic has also revealed the limits of traditional policy instruments in stabilizing the economy, controlling inflation, and fostering economic growth. Fiscal Choices sheds light on the economic dimensions of COVID-19 and examines the state of Canada’s fiscal policy and fiscal health following the pandemic.

The book covers a cluster of key fiscal policy topics: the overall capacity of government, the growth of inequalities, the management of sovereign debt, and the troubled institutions of federalism and parliamentary government. The book draws upon candid, in-depth interviews with over 70 former and current politicians, public servants, and academic experts who aim to establish a sustainable future within an accountable political system.

The book argues that although those who are entrusted with the instruments of power are intelligent and well meaning, they are reluctant to take risks or abandon well-known, if poorly performing, formulas. It concludes with a set of predictions and prescriptions rooted in a realistic interpretation of Canada’s political economy. Ultimately, Fiscal Choices presents a sober assessment of federalism and parliamentary government as instruments of democratic accountability.

Drawing on interviews with economic policymakers, Fiscal Choices examines the fiscal policies implemented by the Canadian government in response to the COVID-19 pandemic, and the economic and political challenges that we face in the aftermath.

List of Illustrations
List of Tables
Preface 
Abbreviations

1. The Pandemic and After
 Responding to the Pandemic
 The Post-pandemic Search for Stability
 What Kind of Change Is Required?
 Keep in Mind

2. Making Economic Decisions
 An Epistemic Elite
 Distinctive Roles and Critical Relationships
 The Limitations of Elite Decision-Making
 Conclusion

3. Governing after the Pandemic
 Can Government Do Good?
 Stabilizing the Economy: Program Design and Delivery
 Governments’ Role in the Economy: Will Anything Change?
 The Growth Imperative 
 Conclusion

4. Coping with Income and Wealth Inequalities
 Why Is Inequality a Problem?
 The Complicated Relationship between Inequality and Economic Growth
 Traditional Programs That Tackle Inequality
 Alternative Proposals on Inequality
 Conclusion

5. Dealing with the Debt
 Debt Dimensions
 The Debt Threat
 Guardrails, Anchors, and Rules
 Debt Options: Good, Bad, and Ugly
 Conclusion

6. Holding the Federation Together
 Evaluating Fiscal Federalism Institutions
 The Pandemic: Addressing a Fiscal Emergency
 Risk Reduction 
 Risk Sharing
 Conclusion

7. Keeping Government Accountable
 On Being Accountable
 Parliament and the Budget Process
 Bureaucrats, Budgets, and Program Reviews
 Auditors and Budget Officers
 Conclusion

8. Canada’s Fiscal Future
 Stubborn Realities
 Pandemic Effects
 Pressing Needs
 Conclusion

Appendix 1: Interview Questions
Appendix 2: A Survey on Canadians’ Opinions on the Post-pandemic Economy and Fiscal Policy

References
Index