Federal Election – Politicians refuse to admit that deficits are inevitable

This article, which first appeared in the Toronto Star, argues thatCanada will be caught in a prolonged recession in the US.  If so, most governments in Canada will end up with deficits in the next few years, and it is better to plan for this eventuality than to just hope it does not happen.  The real challenge is to maintain fiscal discipline even when deficits are permitted.  If governments plan sensibly, they can establish ‘fiscal rules’ setting out what deficit financing can be used to pay for and how large deficits can be.

ISBN – 1-55382-316-8