See also Melina, G., Yang, S. and Zanna, L-F. (2014), “Debt Sustainability, Public Investment, and Natural Resources in Developing Countries: the DIGNAR Model”, Working Paper Series, No 14/50, International Monetary Fund. This paper shows that with a higher level of investment efficiency, the outlook for debt sustainability improves. 7.
The disease is the notion that an ephemeral boom in one sector causes permanent losses in others, in a dynamic that is net harmful for the Canadian economy. While the tidiness of the argument is appealing and making commodities the scapegoat is tempting, the diagnosis is overly simplistic and, in the end, wrong.