The biggest risk to Canada’s economic health is the United States plunging over the so-called fiscal cliff, which would drag Canada close to a recession, Bank of Canada Governor Mark Carney warns. But a satisfying resolution to the fiscal debate could lead to a bounce in U.S. economic activity, Mr. Carney said Tuesday. “Europe is the biggest risk over the next two years, but in the very short term the ‘fiscal cliff’ is the most acute risk,” he said in an interview with The Globe and Mail editorial board, prior to an afternoon speech in Toronto. U.S. legislators and the Obama administration are embroiled in a showdown ... (full story)