Canada is affirmed a AAA at Fitch. "The 2012 budget bolsters the country's fiscal position as it...

Canada is affirmed a AAA at Fitch. "The 2012 budget bolsters the country's fiscal position as it delivered on previous commitments to rein in expenditure and withdraw the stimuli in a timely manner ... fiscal discipline has won a strong mandate from the electorate."

Comments (4)
  • Wyatt Junker
    , contributor
    Comments (4498) | Send Message
    Eat that Krugman.
    5 Sep 2012, 11:35 AM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
    Amazing. Who would have thought that being somewhat responsible with finances actually is a good thing?
    5 Sep 2012, 11:53 AM Reply Like
  • SoldHigh
    , contributor
    Comments (991) | Send Message
    Canada showing how to lead by embracing time-proven conservative principles in more recent years.


    Meanwhile, the USA is stuck with a hard-core socialist "Dear Leader" whose policies continue to be a drag on the US economy.
    5 Sep 2012, 11:59 AM Reply Like
  • bob adamson
    , contributor
    Comments (4560) | Send Message


    When American commentators mention Canada this is often for the purpose of slanging or celebrating some aspect of US social, economic and political policy by noting a contrast between the US and Canada; two countries otherwise sharing many geopolitical and cultural attributes. As the two following opinion pieces illustrate, Paul Krugman periodically engages in this as well and has generally seen Canada’s experience in a positive light.




    By good fortune and luck, Canada since 1995 has followed essentially classical Keynesian fiscal and monetary policies (albeit often expressed in trendy monetarist terms) whereby the national debt was significantly reduced during relatively good times prior to 2008 and deficit spending and monetary expansion deployed after the 2008 global meltdown to blunt the domestic impact of the deep global recession. Coupled with the fact that global demand for Canadian exports remained relatively buoyant throughout this period, that tight control over Canada’s banking industry was maintained throughout and that a broad array of social programs were available throughout Federal, Provincial and local governments in Canada to respond to economic dislocations occasioned by the recession (all of which Krugman has commented upon at one time or another over the past decade), the timely deployment of these Keynesian policies in a flexible manner as circumstances changed (whether formally so acknowledged or not) within Canada since 1995 has allowed Canada to both significantly moderate the negative impact domestically of global trends while avoiding the need to incur heroic measures of fiscal deficits or austerity at any one time.


    Krugman has generally approved these timely shifts of policy, including the current need to discourage excessive expansion of mortgage and other consumer debt levels in Canada. Moderate tightening of the domestic monetary and fiscal policy in Canada (the first very tentative steps of which are now taking place), provided that the global economy does not fall back into recession, is very consistent with what Krugman has generally advocated.
    5 Sep 2012, 12:45 PM Reply Like
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