If anyone still needs convincing of that, Canada’s recent economic performance provides compelling evidence. Canada’s economic prospects Canada’s economic growth so far this year has exceeded expectations. Real GDP jumped by 6.2 per cent at annual rates in the first quarter of 2002 and rose by 4.3 per cent in the second quarter.
Nevertheless, policy makers should act to stem pure contagion risks if data or analytical tools show sizeable spillover risks and there is no convincing evidence that this is caused primarily by economic fundamentals or common shocks. 2  Coase, “The problem of social cost”, Journal of Law and Economics, 1960.