Fortin, Pierre - In: Canadian Journal of Economics 32 (1999) 4, pp. 1082-1092
In this rejoinder the key role played by high interest rates in the Canadian economic and fiscal crisis of 1990-96 is reaffirmed. I argue that (i) important econometric biases could have led many to underestimate the effects of high interest rates on output; (ii) it is imprudent to conduct...