What was unusual about Canadian fiscal policy between the mid-1970s and the mid-1990s?
Why do many economists project falling, and then increasing, budget deficits and government debt over the next several decades?
Describe four problems affecting measurement of the government budget deficit.
According to the traditional view of government debt, how does a debt-financed tax cut affect public saving, private saving, and national saving?
According to the Ricardian view of government debt, how does a debt-financed tax cut affect public saving, private saving, and national saving?
Do you believe the traditional or the Ricardian view of government debt? Why?
Give three reasons why requiring a balanced budget might be too restrictive a rule for fiscal policy.
Why might the level of government debt affect the government’s incentives regarding money creation?