April 18 - The work of economists Carmen Reinhart & Kenneth Rogoff has come under fire and outgoing Bank of Canada governor Mark Carney says their research carries great insight but he doubts the 90% threshold.
What unique. The line Hart Ron I think. Others won't be it's on if its on the front page of the papers numbers on you gotta be by definition has to be. You know so occasionally journal acknowledged stylist -- Florida -- in life and well I think the look I I haven't wanted to spread there was -- conspiracy. Others have. Apparently. The I I think what's important is to recognize. The depth of the insights by right. Right part about work. Which Adam. Which captured number of dynamics which have come to pass. Or economies. I mean major crises. And and I actually. In or analysis in our analysis and forecasting what happened US. What would happen to two -- with. We actually relied much -- we we did -- we use their work as a sanity check on weather forecasts. The element that wasn't relevant. At least in part it was exactly the issues people focused which is -- 9% debt to GDP. Component. It's it's more the time it takes to repair. Private. Balance -- to take to repair financial institutions. And again if you use their broader framework in the broader lessons one and and also it's two point one. I've used a broader framework you see. How much progress the US has made. Once that US households plus sixteen trillion network in nine months following the collapse of Lehman of him but he he. Although they 5% of that -- now. And it's only now that housing market for so that they -- well that was ultimately -- officials -- -- and second thing. That they have real and on one of the many reasons is about the dangers of financial repression. As part of the ultimate response and that that is very -- -- line in the India as the another group. And what about this specific point around public that an economic growth to have you on that. Well I mean. Obviously there's a limit we'll get him. Pin pinned down on the fact when that there is that there are different studies. That the studies and BI asked for example. -- -- -- -- -- -- -- -- I believe different abilities it. In in the same -- -- we detective Steve before it and the but what there's there's no magic. The magic figure. One of the things that we are. Do -- discussing Nazis as a finance minister discussions central banker -- after the chip and sources close but at the G-20 this weekend. Is what are the long term fiscal lakers. So there's a short term path and this is one of Christine regards keep messages. The path that this -- credible fiscal policy -- longer term sustainability issues. And having them anchored. You know the anchor. And we -- as long term first -- but the anchor war. And mature economy was certain demographics. You know for for candidate might be different it would be different. -- that you know then then we're Brazil. It is so one has to take take that and I would say that from the Canadian perspective given overall fiscal situation we do pretty comfortable on the right. Two sustainable. Sustainable situation.