Public Debt Accumulation and Interest Rates in Canada 1974-1998
نویسنده
چکیده
After a steady decline following World War II, the ratio of Canadian public sector debt to GDP reached a minimum of 6% in 1974. Between 1975 and 1995, this ratio increased until it reached a maximum of 81% in 1995. What were the causes of the accumulation of government debt in Canada between 1975 and 1995? How large were the respective contributions of high interest rates, low growth rates, the business cycle, and changes to tax rates and program expenditures? To what extent did the fiscal choices of members of the Canadian economic union impact upon one another? This paper offers answers to these questions.
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