The Problem of Public Debt in Canada

• Published in: Canadian Journal of Economics and Political Science
• Main Author: MacGregor, D. C.
• Format: Article in Journal/Newspaper
• Language: English
• Published: Cambridge University Press (CUP) 1936
• Subjects: General Earth and Planetary Sciences; General Environmental Science; Canada; New Zealand; Argentine; Newfoundland
• Online Access: http://dx.doi.org/10.2307/136848; https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S0315489000027833

The slowness of the industrial recovery is gradually disclosing unmanageable situations in public finance. From the standpoint of public debt, countries engaged in the export of staples fall into three classes: (1) those where widespread default occurred in 1931 or 1932 on both public and private debt and where little or no resumption of debt service has occurred, such as most of the South American republics; (2) those where a critical position appeared early in the depression, followed by collective adjustment of internal debts and measures designed to maintain the level of prices, such as Australia and New Zealand; and (3) those where little or no public default or manipulation of debts, foreign exchange, or price levels has hitherto occurred, such as the Union of South Africa and Canada. Newfoundland occupies a curious position, more like that of European countries, having undergone a political as well as a financial reorganization. The Argentine occupies a position intermediate between groups (1) and (2).