Carney’s groundbreaking fiscal redefinition reshapes public finance, unlocking fresh avenues for government borrowing. By redefining “deficit” and “debt sustainability,” the new framework promises greater fiscal flexibility. Stakeholders can now navigate a clearer path to financing large‑scale projects while maintaining transparency and confidence in sovereign creditworthiness.
In 2009, economists Reinhart and Rogoff warned that when nations try to defy economic gravity, crisis is inevitable. Today, Canada is flashing similar red flags: soaring debt-to-GDP, falling productivity, and rising deficits. Despite historical evidence, we keep spending as if “this time is different.” But real prosperity is built by entrepreneurs, job creators, and communities from the ground up. At AEG, we believe change only comes when we act differently.
