Keith Acheson

The choice of monetary instruments and the theory of bureaucracy

Increasingly economists have reached agreement on the requirements for effective monetary control. In theory, control of the price level can be achieved through control of one nominal magnitude and an interest rate.(2) In practice, the requirements as Harry G. Johnson argues, are identical: ‘the central bank can control the price level if it fixes the yield on its liabilities and controls the quantity thereof through open market operations’ (pp. 977–78). Acceptance of this view ranges over a wide spectrum of economists from Milton Friedman (1960, pp. 50–51), an adviser to the Republican party, to Warren L. Smith, a member of the Council of Economic Advisers under the Johnson administration. Smith for example states: I would favor placing complete reliance on open market operations, under ordinary circumstances, as the means of conducting general monetary policy… It is difficult to see that adjustments in reserve requirements and the discount rate give the authorities any ability to change the structure of interest rates and the total credit supply that could not equally well be accomplished by sufficiently flexible use of Federal Reserve open markets and Treasury debt management operations. (p. 281)

Bureaucratic Theory and the Choice of Central Bank Goals

Economists have frequently asserted that central bank priorities among economic goals have not been appropriate to the public’s desires. For example, one interpretation of the results of Reuber’s pioneering study of central bank preferences was that: [The Bank of Canada’s] reactions reflect the placing of a very heavy implicit weight on price stability compared with higher employment, presumably based on a judgement about the relative economic costs of more unemployment and more price inflation. The evidence examined on the relative economic costs of price inflation and unemployment suggests that the economic costs of inflation are not as high relative to the costs of unemployment as the reactions and statements of the authorities have implied. [Reuber, p. 132](1)

Understanding Hollywood's organization and continuing success

Integrated international marketing of films and related merchandise and close financial ties between distributors and roducers have evolved to cope with the risks of piracy, cost containment, opportunism, and revenue uncertainty. Our reading of the evidence is that this system has dominated because of its efficiency. In search of an explanation of why America remains the centre of this institutional and contractual web, we examine the impact of two world wars, the rapid commercialization of new technologies in the United States by aggressive managers, an open financial system and the ethnic diversity, language homogeneity, and size of the domestic market.

Cultural entrepreneurship and the Banff Television Festival

Cultural entrepreneurship involves a conception, an initial launch, and a transition to an established event. Each stage generates “wicked” coordination and financial challenges. We explore this important process by examining the history of the Banff Television Festival, an annual event featuring a competition, workshops, and providing a forum for developing projects. The documentation indicates that the anticipated problems of nonprofit activities — inefficient administration, crude management systems, slow adaptation and little innovation — were not characteristic of the Banff experience. Well informed industry “customers” and patrons have established an environment which generally encouraged managerial competence and creativity. This benign result may not generalize to other cultural initiatives, in particular to those that serve the public directly and draw patronage from diverse sources.

Organising Shopping Services: Trends in Canadian Retailing, 1972–87

This article argues that innovations in organisational form are the driving force behind changes in retailing. After describing the decline in the value added component of retail sales that has occurred in Canada since the early 1970s, it then argues that an analysis of this trend should situate retailing within the more encompassing framework of shopping and recognise the response of organisations to externalities arising in shopping activities. Organisational change economises on the costs of coordination by reassigning activities and changing the incentives that face interacting agents. The argument is illustrated with examples from shopping centres and franchising.

Canadian content rules for television: Misleading lessons for Europe

SummaryOur recommendation is that Europe and the EC should proceed with caution before implementing extensive mandatory television content policies. In the foregoing, we have attempted to outline the reasons why we feel content policies have not worked in the past in Canada, and why they will face increasing difficulties wherever implemented. The reasons are administrative, technological and financial. In addition we are not convinced by the economic rationales for content policy. However we do recognize the right of governments to pursue cultural policies similar to those represented by content policies, and elsewhere we have proposed alternative courses of action for governments to consider.Aside from tracing the evolution of Canadian content policies, our research has examined government funding of films and programs, the use of coproduction treaties and coventures and evolving technological considerations.(22) At present we are examining managerial aspects of film making and television production and distribution in the current international environment.

Rethinking Canadian magazine policy

This article examines the recent magazine dispute between Canada and the USA that was the subject of a World Trade Organization panel ruling in 1997. Canada withdrew or amended the offending measures and subsequently introduced new legislation which the USA claimed to be a replacement of one of the banned measures. This led to the continuation of the dispute and finally to a negotiated settlement in 1999. After examining the underlying facts and the arguments used in this and previous trade conflicts involving periodicals, the article concludes that a continuation of past protectionist policies offers only the possibility of more conflict. In order to bring about a rationalization of the Canadian magazine industry, a reorientation is needed towards a more open perspective. Comment is made on the relevance of these events for other countries.

Chapter 33 Culture in International Trade

Abstract Cultural allegiances whether inherited, imposed or chosen, affect economic activity. Many of these cultural layers – ethnic background, religion, language, ideological orientation, and artistic interests – spill over national boundaries. Cultural ideas travel the world along many routes from the Silk Road to modern electronic networks. Historically, peripatetic artists, composers and writers have responded to shifting patronage and market opportunities. More recently, firms in the cultural industries develop and produce content and distribute it as widely as the market will bear. Visual and performing arts and the cultural industries have both common and distinct international economic dimensions. In trade agreements, countries voluntarily limit their policy options in return for restrictions on the choices of the other member countries. Arguments for protection versus openness for cultural activities are more complex and nuanced than for other economic sectors because of a wide range of views on how international cultural policy affects individuals and the national culture. The inclusion of GATS and TRIPS in the WTO made the WTO a more important influence on international cultural policy than its GATT predecessor. UNESCO continues to play a complementary role. The Florence agreement (1950) encourages the free flow of cultural products and a convention addresses illicit trade in cultural property, a heritage issue. Currently, UNESCO is the focus of efforts to create a rules-based convention to protect and promote the diversity of cultural expressions, which is designed to either separate international cultural policy governance from the WTO or strengthen the bargaining position of cultural industry interests in WTO negotiations. These discussions take place in circumstances where there are serious shortcomings in the measurement of trade in cultural goods and services.

POWER STEERING THE CANADIAN AUTOMOTIVE INDUSTRY : THE 1965 CANADA-USA AUTO PACT AND POLITICAL EXCHANGE

Abstract In the 1965 Canada—USA auto pact the automotive companies were required to maintain specified levels of assembly activity in Canada. This restriction and subsequent events such as the correlation of a shift in employment to Canada and the widening of pay disparities between American and Canadian workers, the concentration of research in the United States despite Canadian fiscal incentives, and the differences in the ‘rescue’ packages offered to Chrysler by the two governments, cannot be explained by conventional economic theory. The paper demonstrates that they can be explained as mutually advantageous accommodations to different evaluations of political outputs reflecting endowments and domestic economic interests.

Viewers' Choice: THe Effects of Technology, Geography and Policy

While all countries have faced similar technological developments in television production and distribution, each has chosen a particular combination of policies to allocate licences, influence content and introduce new delivery systems. The result has been differences in the choice of programs available to viewers, their means of funding and methods of delivery. Current technological changes are forcing a revision of these policies and the likelihood of converging menus of choice for viewers. In this paper we outline the choices currently or soon to be available to viewers in three capitals: Canberra, Ottawa and London. Reasons for the differences are noted along with indications of future regulatory issues.