Present:

BOOM AND BUST

AGAIN:
POLICY CHALLENGES
FOR A
COMMODITY-BASED
ECONOMY

Image provided courtesy of Travel Alberta

We gratefully acknowledge our sponsors:

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 BOOM AND BUST AGAIN:
POLICY CHALLENGES FOR A COMMODITY-BASED
ECONOMY

May 6th and 7th, 2010

Delta Edmonton Centre Suite Hotel
10222——102 Street
Edmonton, Alberta

Image provided courtesy of Travel Alberta

Conference Description:
This conference honours the memory of Bradford Reid, Professor of Economics and former
Director of the Institute for Public Economics who passed away from cancer last year. One of
Professor Reid’’s research contributions was a critical appraisal of Keynesian economic theory.

Alberta’’s economy has been characterized by periods of boom and bust, whether the collapse of
agriculture prices in the 1930s to peak oil prices in 1980 to collapse in the mid-eighties. This
conference explores a wide range of issues associated with this historical phenomenon:
economic diversification strategies; savings policies; energy and the environment and the
challenges faced by government policy-makers. This conference will be of interest to
politicians, government officials, business leaders, faculty, and students.

For further information, please visit our website:

http://www.economics.ualberta.ca/boom_and_bust_again.cfm
PROGRAM

Day 1- Thursday, May 6th

11:15-12:30 p.m. Registration and Lunch

12:30-12:50 Conference Welcome

Douglas West, Chair, Department of Economics
William Robson, President and CEO, CD Howe Institute
Tribute to Bradford Reid
David Ryan, University of Alberta

12:50-1:30 Keynote Address

Honourable Ted Morton, Minister of Finance and Enterprise

1:30-1:45 Break
1:45-3:00 Session 1- Overview- Historical Experience
Speakers
Herb Emery and Ron Kneebone, University of Calgary: Three
Strikes and You’’re Out? The Inevitability of Resource Busts and its
Challenges for Alberta’’s Policy Makers
Rolando Ossowski, former staff member, International Monetary
Fund: Fiscal Policy Responses of Oil-Producing Countries to the
Recent Economic Cycle
Commentator
Paul Boothe, Industry Canada
3:00-3:15 Break
3:15-5:00 Session 2- Economic Growth and Diversification- Theory and Practice
Speakers
Bev Dahlby, Mel McMillan and Kathleen Macaspac, University of
Alberta: Output Instability in Western Canada
Jason Brisbois and Ted Chambers, Western Centre for Economic
Research, University of Alberta: I’’ve Heard That Song Before: Harry
James on Boom, Bust and Diversification
Commentator
Brad Ferguson, PricewaterhouseCoopers

6:00-8:00 Reception and Dinner

8:00-9:00 Keynote speaker
John Murray, Deputy Governor, Bank of Canada
PROGRAM
Day 2- Friday May 7th
8:00-8:30 Coffee and Continental Breakfast

8:30-10:00 Session 3- Energy, Environment and the Sustainable Economy

Speakers
Roger Gibbins, Canada West Foundation: When Worlds Collide:
Alberta and Global Warming
Andrew Leach, University of Alberta, School of Business: GHG
Emissions——Policy Options for Alberta
Commentators
Mark Anielski, Author, The Economics of Happiness,
Honourable Anne McLellan, Alberta Institute for American Studies,
University of Alberta

10:00-10:15 Break

10:15-12:00 Session 4- Saving for the future

Speakers
Bob Ascah, Institute for Public Economics: Saving for the Future——
Why is it so Difficult? A Survey of Leaders’’ Opinions
Colin Busby, C.D. Howe Institute: What to do with the Family Silver?
Commentator
Shirley McClellan, Distinguished Scholar in Residence, University of
Alberta

12:00-1:30 Lunch
Introduction of Speaker
Chancellor Linda Hughes
Keynote speaker
Honourable Jim Prentice, Minister of the Environment (invited)

1:30-3:00 Session 5- The Revenue Challenge

Speakers
Stuart Landon and Connie Smith, University of Alberta: Energy
Prices and Revenue Volatility
Carman R. McNary, Fraser Milner Casgrain: Alberta Tax and
Revenue Options——A Practitioner’’s Approach
PROGRAM

Day 2- Friday May 7th (continued)

1:30-3:00 Brad Humphreys, University of Alberta, and Victor Matheson,
College of the Holy Cross: Booms, Busts, and Gambling: Can Gaming
Revenues Reduce Budget Volatility?
Commentator
Barry Scholnick, School of Business, University of Alberta

3:00-3:15 Break

3:15-5:00 Session 6 - The Expenditure Challenge

Speakers
Al O'Brien, Institute for Public Economics: Expenditure
Management in Alberta: In Search of Stability
Stephen Duckett, Alberta Health Services: Alberta's Health Spending
Challenge: A Policy-Oriented Analysis of Inter and Intra-Provincial
Differences in Health Expenditure
Commentator
Ken Boessenkool, GCI Canada

5:00-5:15 Closing Remarks

Alice Nakamura, University of Alberta School of Business

5:15-6:00 Wine and Cheese

PROGRAM

BIOGRAPHIES (in order of appearance)

Hon. Ted Morton
Ted Morton was elected to his second term as a Member of the
Legislative Assembly of Alberta for the constituency of Foothills-Rocky
View on March 3, 2008. Dr. Morton currently serves as Minister of
Finance and Enterprise. Previously, he served as Minister of Sustainable
Resource Development. He was first elected in November 2004.

Dr. Morton obtained his bachelor of arts in political science from

Colorado College (1971) and his MA (1975) and PhD (1981) in political
economy from the University of Toronto. From 1981 to 2004 he was a professor with the
University of Calgary and a visiting professor at institutions in Quebec, France, the United
States and Australia.

In 1998 Dr. Morton was elected as a Senator-in-waiting in Alberta’’s second-ever Senate

election. He served as director of policy and research, office of the Leader of the Official
Opposition, Parliament of Canada in 2001. Dr. Morton has received several career awards and
distinctions, including Phi Beta Kappa (1971); Best Nonfiction Book of 1992, Alberta Writers
Guild; Bora Laskin National Fellowship in Human Rights (1995); and the runner-up, Donner
book prize for best book on Canadian public policy (2000). In 2001 he was recognized in
Macleans Guide to Canadian Universities as one of the 20 most popular professors at the
University of Calgary.

Dr. Morton has published numerous scholarly articles and six books.

He and his wife, Patricia, have three children. In his spare time Dr. Morton enjoys hunting,
fishing, gardening, cooking, and skiing.

courtesy Government of Alberta website

PROGRAM

BIOGRAPHIES
John Murray
John Murray was appointed Deputy Governor of the Bank of Canada in
January 2008. In this capacity, he is one of two deputy governors
responsible for the Bank’’s assessment of domestic and international
economic developments in support of monetary policy decisions,
conducted by the Canadian Economic Analysis and International
Economic Analysis departments. As a member of the Bank's Governing
Council, he shares responsibility for decisions with respect to monetary
policy and financial system stability, and for setting the strategic direction
of the Bank.

Born in Toronto, Mr. Murray received a Bachelor of Commerce degree from Queen's
University in 1971, as well as an MA in Economics and a PhD in Economics from Princeton
University in 1974 and 1977, respectively. After completing his PhD, Mr. Murray taught at the
University of British Columbia as an assistant professor and at the University of North Carolina
as a visiting assistant professor. From 1985 to 1986, he also lectured at Princeton University.

Mr. Murray joined the Bank of Canada in 1980 as a Senior Economist with the Monetary and
Financial Analysis Department. In 1981, he was promoted to Research Officer and in 1982 he
became Assistant Chief of the department. He served as Research Adviser in the Monetary and
Financial Analysis and International Departments from 1984 to 1987. In 1987, he was
appointed Deputy Chief of the International Department, and in 1990, Chief. Mr. Murray was
appointed an Adviser to the Governor in January 2000.

courtesy Bank of Canada website

PROGRAM

BIOGRAPHIES
Hon. Jim Prentice (invited)
Jim Prentice is Canada’’s Minister of the Environment and Member of
Parliament for Calgary Centre-North. Mr. Prentice is responsible for
Canada’’s participation in the Clean Energy Dialogue established by
President Barack Obama and Prime Minister Stephen Harper, for Canada’’s
role in international Climate Change negotiations, and for Canada’’s
negotiations in the 2009 Major Emitters’’ process convened by President
Obama. He has also introduced legislation to modernize penalties for
environmental offences.
Mr. Prentice has been Chair of the Operations Committee of Cabinet since the Conservative
government took office in 2006, a post historically occupied by the Deputy Prime Minister, and
in which he has served for longer than any other person since Don Mazankowski in the
Mulroney government.
Prior to the Environment Ministry, Mr. Prentice was Minister of Industry from August 2007 to
October 2008. There he managed several difficult issues such as blocking the sale of Canadian
strategic technology company MDA to the United States. Mr. Prentice managed the Spectrum
Auction of wireless rights which was expected to raise $1.5 billion for Canadians but which
realized $5 billion. He also translated the Red Wilson Report on Competitiveness into legislative
changes to the Competition Act and the Investment Canada Act.
Mr. Prentice’’s first portfolio, from February 2006 to August 2007, was Indian Affairs and
Northern Development. There he reformed the Land Claims process that had been deadlocked
since 1960; launched the First Nations’’ Drinking Water strategy, introduced significant
reinvestments in aboriginal education and housing, and reformulated the government’’s
relationship with aboriginal peoples.
Mr. Prentice was also the original chair of the Cabinet Committee on Environment and Energy
Security. The National Post says, ““Calgarian Jim Prentice has become Cabinet’’s Mr. Fix-It. He
takes troubled or controversial ministries and turns them around”” (National Post, Opinion, Nov 1
2008). Chantal Hebert, columnist and member of CBC’’s At Issue panel, says that ““Prentice has a
well-deserved reputation as a bridge-builder and he has the influence to make things happen””.
(Toronto Star, Oct 31 2008).
Jim Prentice was elected to the House of Commons in 2004 and re-elected in 2006 and 2008. He
graduated from the University of Alberta and Dalhousie Law School. As a practicing lawyer, Mr.
Prentice specialized in property rights and also served as a commissioner of the Indian Specific
Claims Commission for ten years. Mr. Prentice has lived in Calgary for over 20 years with his
wife Karen and their three daughters.
Courtesy Government of Canada website
PROGRAM

Your registration in this event includes the sessions, continental breakfast, refreshment breaks,
luncheons, conference dinner and wine and cheese reception.

Fees:
Sponsor org, ESNA* or IPAC*: $335 Faculty/Student/Academic: $210 Regular: $420

Register online at:

https://www.epay.ualberta.ca/uaecprd/conference/welcome.do?
confId=587&shortName=Booman

*ESNA: Economics Society of Northern Alberta

*IPAC: Institute of Public Administration of Canada

*All registrations will be confirmed*

*Program subject to change*
*Above prices include 5% GST*
*Deadline for registration cancellation with refund is April 27, 2010*
*Please see http://www.economics.ualberta.ca/boom_and_bust_again.cfm
for more information (including all speaker bios)*

Attendees are responsible for booking their own accommodation. Use one of the following options to book guest
rooms at the Delta Edmonton Centre Suite Hotel,
x Phone in-house reservations at 1-800-661-6655
x Phone Global Reservation dept at 1-800-268-1133
x Email decsh@deltahotels.com
x Fax 780-426-0562

Ask for the ““IPE Conference”” rate. Bookings must be made no later than April 5, 2010 to qualify for the
conference rate.
PROGRAM

Bradford (Brad) Reid

Our friend and colleague, Brad Reid, a member of our department since 1981, died
in January 2009 after a long and courageous battle with cancer. Brad obtained a
B.Com from the University of Saskatchewan prior to completing a Masters degree
in economics here in 1977. After obtaining a PhD in economics from the University
of Toronto, he returned to the Department of Economics at the University of
Alberta, where he remained throughout his academic career.

Brad taught macroeconomics, as well as monetary theory, but in more recent years, created and taught a
popular course on the economics of professional sport. Brad was a superb teacher, but also a demanding
one, as many students –– especially those who thought that any course with the words ““sports economics””
in its title must be a soft option –– discovered to their peril.

Brad’’s research focused predominately on macroeconomics and public economics, and he published in
several edited volumes as well as in a wide variety of international journals, including Journal of
Macroeconomics, Journal of Monetary Economics, The Review of Economics and Statistics, Economic
Inquiry, Canadian Journal of Economics, and Public Choice. Brad was particularly interested in issues
concerned with the size of government, the level of government spending, and the implications of
alternative methods of financing such spending, including the extent to which different methods have
differing effects on the economy.

In addition to his excellence in research and teaching, Brad devoted much of his time to professional and
administrative activities. In addition to being Chair of the Department from 1999 to 2004, and Associate
Chair from 1993 to 1997, Brad also supervised many MA and PhD students, acted as a referee for a
number of prestigious journals, was Associate Editor of Canadian Public Policy from 1986 to 1990, and
was very active in the Institute for Public Economics (IPE), including a term as Director between 2003
and 2006. He also served for one year as President of the University’’s Faculty Club.

Brad’’s medical issues surfaced in early 2006, and he spent much of his remaining time on medical and,
subsequently, disability leaves. Regrettably, this prevented many students from experiencing his
booming lectures (there was no provision for dozing off in Brad’’s classes), his subtle sense of humour,
but more importantly his passion for ensuring that students (and colleagues!) understood the forces and
particularly the incentives that underlie economic decisions. Brad retained his good spirits and interest
in public affairs through most of this period, and shared his insights on a wide variety of topics at
periodic off-campus lunches with some of his colleagues.

As a macroeconomist who had spent many years teaching and writing about how and why Keynesian-
type solutions were unlikely to work effectively, and who believed very strongly in the power of market
forces, Brad was more than a little bemused by the rush to apparently forget all that had been learned in
this field in the past 20 years with attempts by governments to spend their way out of the current
recession. It is only fitting, therefore, that this conference is dedicated in memorium to Brad and his
many contributions.