He says the federal government has become involved in the economy through pragmatic action such as infrastructure spending and a significant stimulus package.

He says that's the kind of action needed instead of direct involvement in companies.

Earlier this month, Ontario Premier Dalton McGuinty said that the days of governments quietly watching over the economy were over and it was now time to intervene.

McGuinty's comments came just days after Ontario and Ottawa provided billions of dollars in financial aid to Chrysler in exchange for a two per cent stake in the automaker.

But Flaherty says the Chrysler situation was special and prompted by the U.S.'s decision to take equity in Chrysler as it tried to save the company.