Stimulus vs Public Investment

A column by Nobel Prize winning economist Joe Stiglitz in the Financial Times makes what I think is an important point. The current debate over fiscal policy for the US, Europe and Canada is often characterized in the media as one between advocates of  higher deficits from Keynesian style stimulus…
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Tea Party North

Last week, Travis Fast noted Terry Corcoran’s strained argument that over-regulation of banks is what ails the global economy. Terry’s next column went even further off the deep end, endorsing the hard-money libertarianism of gold bugs like Eric Sprott. Today’s column is a full-blown defence of the US Tea Party….
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C. D. Howe’s Overnight Moves Need Work

Less than a month ago, the C. D. Howe Institute released a paper by Michael Parkin, “Overnight Moves: The Bank of Canada Should Start to Raise Interest Rates Now.” The next day, its Monetary Policy Council called on the Bank to increase the overnight interest rate. This call was terrible….
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The New Phase of the Crisis

The Great Recession was followed by an anaemic recovery in the advanced economies, which threatens to be followed by a double dip or worse now that the fiscal stimulus measures of 2009 and 2010 have been succeeded by austerity programs. Now we face a new financial crisis, or at least…
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Navigating troubling economic waters

Down south, the Obama administration is in a dangerous game of chicken with Republican congressional leaders, who are cynically holding the US economy hostage in order to impose a radical agenda of spending cuts. Obama has seemingly bought into the rhetoric of cutting debt, rather than focusing on the real…
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The Riddle of the Middle

It’s like a bad riddle: almost everyone thinks they belong to it, but few can define what it is. Politicians claim to champion it, but it’s increasingly difficult to determine what it actually wants. And, often, when we talk about it, we’re really only referring to part of it—the part…
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