Finance committee  The book was not about the stock market. Rather, it was about the distinction between flows, income and stocks, meaning debt, capital, and so on. But to answer the question you put just before this, on trying to get firms to invest for the future, I would say that firms need to believe that there will be aggregate demand, that there is a demand for their products.

Finance committee  Well, I would say the first inefficient program that should be cut is the reduction of corporate income taxes.

Finance committee  To answer your question, I would say that the situation is not exactly temporary in the sense that, for a decade, Canadian businesses have been making more profits than they have been investing. You might say that businesses have been lending money to households for a decade whereas normally you would expect households to be lending money to the businesses.

Finance committee  I also agree.

Finance committee  I would say that the prudent policy now would be to increase government expenditures, forget about “sound finance”, and move forward with an expansionary fiscal policy. It would be prudent, given all these negative signs around us.

Finance committee  When a government follows policies that lead to deficit, there is an immediate positive effect from a strictly macroeconomic point of view. If the government puts more money in the economy, it is as if consumers and businesses were putting more money in the economy. The only reason why a reversal of the policy of fiscal restraint might have negative effects is the psychological factor.

Finance committee  Good morning, Mr. Chair. I should first of all point out that I'm not a forecaster. What I'm going to tell you is based on my feelings, my experience and my understanding of the laws of macroeconomics. Basically, there is no doubt in my mind that we are heading toward an economic recession or, at the very least, toward a period of almost zero growth.