Long-Term Trends in Public Finances in the G-7 Economies /

Today's record public debt levels in most advanced economies are not only a direct fall-out from the global crisis. Public debt had ratcheted up over many decades before, when it had been used, in most of the G-7 countries, as the ultimate shock absorber-rising in bad times but not declining mu...

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Bibliographic Details
Main Author: Schaechter, Andrea
Other Authors: Cottarelli, Carlo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2010.
Series:IMF Staff Position Notes; Staff Position Note ; No. 2010/013
Online Access:Full text available on IMF
Description
Summary:Today's record public debt levels in most advanced economies are not only a direct fall-out from the global crisis. Public debt had ratcheted up over many decades before, when it had been used, in most of the G-7 countries, as the ultimate shock absorber-rising in bad times but not declining much in good times. Alongside, primary spending increased, particularly during 1965-85, reflecting predominantly a surge in health care and pension spending. Looking ahead, advanced economies will face the formidable challenge of reducing debt ratios at a time when ageing-related spending, in particular often underestimated pressures from health care systems, will put additional pressure on public finances. Addressing these fiscal challenges will require growth-friendly structural reforms, a fiscal strategy involving gradual but steady fiscal adjustment, stronger fiscal institutions, expenditure and revenue reforms, and an appropriate degree of burden sharing across all stakeholders.
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Physical Description:1 online resource (24 pages)
Format:Mode of access: Internet
ISSN:2617-6742
Access:Electronic access restricted to authorized BRAC University faculty, staff and students