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Canada’s new Liberal government is expected to post a shortfall of about C$30 billion ($22.5 billion) in its debut budget, representing one of biggest expansionary swings in fiscal policy in the nation’s history. It’s the sort of activism increasingly touted within global policy circles, including at the International Monetary Fund, as central banks begin to run low on tools.
With Canada’s shift, the Group of Seven is now almost evenly split between deficit-spending advocates and austerity hawks, like Germany and the U.K., whose Chancellor of the Exchequer George Osborne released a budget Wednesday that stays the course on fiscal tightening. …
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