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- Fiscal Targets and Economic Growth
Fiscal Targets and Economic Growth
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When will the fiscal dividend appear and what is its likely magnitude? Should deficit targets be replaced by debt targets or debt/GDP targets? Should the fiscal dividend focus on tax cuts and increases in program expenditures? Should the Canadian government shift away from an annual deficit target to budget balance over the cycle to allow automatic stabilizers to play their important buffering role? And if so, what level of contingency reserve is necessary to ensure that cyclical budget balance can be met? Addressing these and other important questions, Fiscal Targets and Economic Growth provides valuable insights into labour force trends, productivity, long-term projections, automatic stabilizers, fiscal prudence, Optimal debt ratios, and investing the fiscal dividend.
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