Wednesday, December 24, 2008

Where are we going?

Anthony Boeckh, founding trustee of the Fraser Institute and president of a private investment firm, tells the Financial Post that the path ahead will be rocky. Boeckh, a former economics prof at McGill university who has a PhD in finance and economics, says the current crisis is due to flaws in the international monetary system.

Boeckh says in the days before 1971 when the U.S. dollar was tied to the gold standard, economic corrections were less severe than today. However, debt has now gotten out of control, and the current responses are only making private debt into public debt. Although he thinks we're not far from the bottom, he still expects a series of crises in the future. He says Canada is vulnerable if deflation is prolonged, but as a small and open economy, there's not much we can do.

Click here to read the full interview.

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