Debt Reduction and Economic Stability. This paper examines the importance of debt reduction in Canada. It argues that debt reduction is essential to economic stability because it creates 'wiggle room' or the ability to respond to economic changes. Additionally, debt servicing erodes both productivity and social programs. Finally, the relative success of the current government's debt reduction and its future fiscal policy are assessed. 5 pgs. Bibliography lists 9 sources. Pages: 5 Bibliography: 9 source(s) listed Filename: 5200 Debt Reduction Stability.doc Price: 44.75

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