Government finance

Just when the world economy appeared to be settling down, Greece -- that cradle of civilization, the birthplace of democracy – exploded with financial and political angst. The Greek/Eurozone debt crisis continues to send shock waves through the global financial system. It is the new fault line of the 2008 financial crisis – the new contagion that threatens many other nations around the world.

Paul Martin was Canada's Minister of Finance from 1993 to 2003, and then served a short term as Prime Minister. He spoke on Canada’s  debt reduction strategy in the 1990s to a recent Public Services Summit organized by the Guardian newspaper in the UK, and Canadian newspapers report that he is being tapped by the Europeans for advice on fiscal matters.

OTTAWA—In a report released today by the Canadian Centre for Policy Alternatives (CCPA), two prominent economists warn of the ongoing the inherent instability of financial markets. The report, by Doug Peters, former Secretary of State (Finance) and former TD Bank Chief Economist, and economic consultant Arthur Donner, analyzes the recent meltdown in U.S. and European financial markets and finds it was a classic “Minsky moment”—a term named after economist Hyman Minsky to describe a moment of financial frenzy.

Now that Canada is in the fiscal red, taxes appear to be coming back into fashion. A surprisingly broad swath of Canadians — and not your usual suspects — are musing aloud about the need to raise taxes to tackle the deficit and to pay for the things we care most about, such as public health care. Almost three out of five Canadian CEOs surveyed in March say higher taxes are needed to get the country back into the fiscal black.