Wage-Price Guidelines: Canada's Approach

Abstract

The Canadian Prices and Incomes Commission was set up in June 1969 and given a termination date of December 1971, which was later extended to June 1972. While its terms of reference were research, cur? rent analysis and policy advice, it quickly sought an activist role in attempting to apply restraints on the rates of price and wage increases. This paper deals exclusively with this latter aspect of the Commission's work, outlining some brief history, the working of the restraint pro? gramme, and reasons for the failure of the Commission's thrust. It is intended to give an account of the Commission's active role, along with reflections prompted by the rise and failure of this, and does not seek to embark on a general assessment of incomes policies or wage-price guide? lines, which are topics already covered by a fair amount of literature.1 No reports on the Commission's research programme were available at the time of writing.