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November 11, 2011 15:13 ET

BMO Economics Applauds Canada's Stance on Fiscal Balance

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2011) - According to BMO's Chief Economist Dr. Sherry Cooper, Minister Flaherty's decision to postpone balancing the federal budget was a good one.

"I applaud Finance Minister Flaherty's decision in this week's Economic Update to postpone balancing the budget at this time of economic uncertainty," said Dr. Cooper. "It is prudent for us to maintain an open-minded and flexible stance on countercyclical monetary and fiscal policy. Minister Flaherty and Governor Carney have struck the right balance on both.

"Our corporate tax rates are the lowest in the G7 and amongst the very lowest in the OECD. Entrepreneurship is thriving in Canada, although much can be done to develop a deeper venture capital market. Private sector research, development and innovation are key to our future prosperity as public/private partnerships between universities and hospitals and the business community are already bearing fruit in developing and commercializing research and innovation breakthroughs. Of course, much more needs to be done in this area and Canada should continue to encourage the in-migration of young talent from the rest of the world."

Dr. Cooper's full report, entitled Lucky to be Canadian can be found at http://bmonb.com/economics/bottomline/20111111/bottomline.pdf.

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