Debates on the role of the state and the viability of Canadian economic development are especially intense during periods of change, such as the contemporary era of globalization. In this completely revised, updated, and enlarged second edition of The Political Economy of Canada ProfessorsHowlett, Netherton, and Ramesh outline the principal structural elements of the Canadian political economy and describe the importance of such factors as resources, social class, and international trade. The authors stress the significance of political institutions at the national, international,and subnational levels that substantially affect the production and distribution of wealth.Three chapters consider the strengths and weaknesses of major approaches to Canada's political economy, the liberal and socialist theories as well as the staples approach pioneered by Harold Innis. Subsequent chapters explore the structure and organization of, and the interrelationships between, thestate, labour, and capital in Canada, and show how their fragmented and decentralized nature limits the capacity of governments to 'manage' a globalized economy. The book outlines the history of the domestic political economy and examines how Canada is linked to the international political economythrough the World Trade Organization and NAFTA. Particular attention is devoted to the constraints imposed on the Canadian state by a market-oriented, resource-exporting economy and by growing reliance on US trade.The final chapters examine monetary and fiscal management and industrial policy, demonstrating how these policy arenas are shaped by ideology, new globalizing and regionalizing constraints, and the (dis)organization of the major policy actors.