IMF Urges Canada to Bring Back Debt Anchor and Keep Fiscal Policy Tight
- Trudeau government’s barometer is declining debt-to-GDP ratio
- Floating target has given government leeway on reducing debt
Chrystia Freeland speaks alongside Justin Trudeau in Ottawa on March 29.
Photographer: David Kawai/BloombergThis article is for subscribers only.
The International Monetary Fund says Canada’s government should consider bringing back a debt anchor.
The IMF has recommended Canada adopt more binding fiscal constraints for a third year in a row, saying the introduction of a federal debt consolidation plan would help guide market expectations while bolstering credibility and accountability.