Canada Economics

Canada Economics Focus

26 June, 2013

In case of emergency: Blow the budget

Fiscal policy might have to provide more stimulus soon unless economic growth improves materially. For housing bears such as ourselves, the potential for additional fiscal stimulus helps to limit the downside risks from a housing slump and a sharp decline in house prices. This is a key reason why we expect a period of slow but positive economic growth rather than an outright recession.

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