By Robert Kozak and Leslie Josephs
Of DOW JONES NEWSWIRES
LIMA -(Dow Jones)- Canadian Prime Minister Stephen Harper said Saturday that the world is entering into a "dangerous" economic period and nations must be careful not to erect trade barriers.
"The world is entering an economic period unlike and potentially as dangerous as anything we have faced since 1929," he said in a speech at the annual Asia-Pacific Economic Cooperation summit.
He said "shortsighted" attempts to save jobs with protectionist measures was one of the reasons behind the 1929 crash.
"This is the time for opening doors, not for erecting walls," he said.
He noted that the Group of 20 nations had agreed during a recent meeting in Washington, for the need for fiscal deficits to help boost economic growth.
In his speech, Harper also said that his government will "ensure that Canada does not return to long-term structural budget deficits."
He said that he was now somewhat reluctantly convinced that increased fiscal stimulus would be needed, even if it leads to short-term fiscal deficits.
He added, however, that Canada won't return to long-term structural fiscal deficits.
Harper also said that it was necessary for monetary policy to avoid deflation, and said that nations need to retain flexible foreign exchange rates.
Like other leaders present at the Pacific Rim summit, Harper said that regulation is necessary, but said that better, not greater, regulation is key for improving financial crisis.
-By Leslie Josephs and Robert Kozak, Dow Jones Newswires; 51-1-98853-8610; peru@dowjones.com
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(END) Dow Jones Newswires
November 22, 2008 12:11 ET (17:11 GMT)

Publié le 22 novembre 2008 Copyright © 2008 Dowjones