The Trudeau government's fiscal plan as updated in the Fall Economic Statement meets a number of progressive commitments, but also raises a lot of questions about what can be expected of the federal Budget to be tabled next March.
The recent federal election featured something of a debate on fiscal policy, with the Liberals promising to run modest deficits for three years in order to stimulate a sagging economy and finance needed long-term investments in infrastructure and social programs. This approach won wide support among both progressives and mainstream economists.
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.