In response to COVID-19, and the public health response to it, Canada’s federal and provincial governments have accumulated debt in amounts not seen since World War 2. General government debt (federal plus provincial) is expected to exceed 100% of GDP — according to the latest forecast from the IMF … Read this articleGovernment Debt Sustainability in Canada’s Post-COVID Future
The Federal government is in need of a new fiscal anchor. If there is one thing the current crisis has revealed on the fiscal policy front, it is that the debt-to-GDP ratio alone cannot adequately play that role. As a result, additional fiscal rules that allow potentially large deficits during recessions while ultimately balancing budgets over the cycle will be needed to keep the country’s finances on a sustainable path. Read this articleCanada Needs a New Fiscal Anchor. (Québec Has One to Offer.)
The federal debt is rising fast and is likely to reach at least 63 percent of GDP by 2025, a level not seen since the fiscal crisis of the 1990s. But the current low level of interest rates (if continued in the future) mean that the debt-to-GDP ratio is sustainable and will likely decline gradually over time, without the need for any sharp fiscal consolidation in the coming years. Read this articleFederal debt from 1867 … and after the pandemic
This instalment of the Finances of the Nation Research Roundup Series covers the Bank of Canada Monetary Policy Report, profit shifting by multinational enterprises, a number of Canadian think tank articles relevant during the pandemic, Newfoundland and Labrador’s fiscal update and much more. Read this articleFinances of the Nation Research Roundup – July 30
The distribution of wealth in Canada is a hot topic, yet longer term trends are not frequently discussed. Piecing together many studies shows that the wealth share of the top one percent, stable over most the post-war era, may again be increasing. A broader view however shows there have been gains for the middle class and decreasing shares of wealth for the top ten percent. Read this articleWealth Inequality: A Long-Term View
CERB is the most important, if temporary, new income support program in generations, but little is known yet about how and for whom it is working. Read this articleTracking the Canada Emergency Response Benefit
This post is the first of a regular series coming to Finances of the Nation which will serve to aggregate selected current research from think tanks, journals and other relevant sources relating to the Finances of the Nation project. This installation covers the federal government’s Economic and Fiscal Snapshot, Alberta’s economic recovery plan and recommendations on policy for the post-pandemic world. Read this articleFinances of the Nation Research Roundup Number 1 – July 13
How do governments manage fiscal planning amid the unpredictable health and economic effects of a deadly pandemic? Read this articleBuilding the Bridge to a Post COVID-19 Economy
