[Tacheguy]

Modern Monetary Theory is driving the U.S economy. It basically says that federal deficits don’t matter and should be encouraged to reach full employment. If and when inflation starts to show up you bring it under control by raising taxes. Basically started under Reagan. There is a pretty vigorous debate about whether the deficits are going to bite the Americans in the ass at some point. Not much sign of inflation so far though.

In Canada we take a more traditional approach where the federal deficit still seems to be an important political issue. My concern with that is the tendency is to offload deficits to the provinces. Provincial governments don’t control currencies so their debt is more problematic imo.