Seven years after the great financial crisis of 2008, the world economy remains at high risk of a new slump despite continued ultra low interest rates. The IMF has called on the United States to put any interest rate increase on hold so as not to worsen the still extremely weak economic situation in Europe and developing countries, notably China.
The Harper government claims to be paragons of fiscal virtue. They have pledged to balance the federal budget this year, notwithstanding a slowing economy, and are likely set to announce details of the balanced budget legislation promised in the 2013 Speech from the Throne.
The promised legislation will disallow annual deficits in “normal economic times” (whatever they are) and “set concrete targets for returning to balance in the event of an economic crisis.”