User: Brian Ripley: CAD Economy: Picture

Picture

Canada's Minister of Finance suddenly resigned earlier this week. The government's major fiscal policy plank is to "balance the budget" next year in 2015 and according to their press briefs and ex-Minister in charge Mr. Flaherty, that goal will be reached for sure; no need to stick around. All is well, carry on. 

I don't have a Canadian chart equivalent but the chart mashup shows the U.S. sectoral balances to demonstrate that a country with a modern monetary system and who is an autonomous issuer of its own non convertible currency can always pay its federal government bills and when necessary can go into a deficit at the federal level to do so. The bottom panel shows the U.S. sectoral balances going back to post WWII and for most of the time the feds ran a deficit. More at www.chpc.biz

Comments

No comments yet.

...