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Continued financing of government debt by the Bank of Canada poses significant economic risks

Editorial  |  May 18, 2021

Includes “The idea that the Bank of Canada can continue to finance government debt by printing money without a clear commitment to repayment, known as Modern Monetary Theory (MMT), poses enormous risks to the Canadian economy, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank. ‘Modern monetary theory is a pipe dream, and if the federal government and Bank of Canada go down this road, the damage to the Canadian economy could be substantial,’ said Steven Globerman.”

Read the full article on: Fraser Institute (Canada)

 
 
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