Using data covering the period 1974-98 we identify the increase in Canada's debt-to-output ratio that was due to policy choices, the business cycle, and the relative magnitudes of interest and growth rates, respectively. This analysis shows that the conclusions of Fortin (1996) hinge upon a...

Fortin's analysis of the causes of the increase in Canada's debt-to-output ratio is reconsidered. We find that the analysis hinges upon a number of supplementary decisions, and that reasonable choices give rise to results strikingly different from those obtained by Fortin. We also extend...