BOSTON: Few people desire to saddle their children with mountains of debt as an inheritance. After decades of pushing the costs of today’s expenditures and promises onto future generations, that bit of family wisdom appears - at long last - to be influencing government policy.
Most West European countries lowered budget deficits to 3% of GDP to meet the terms for joining the European Monetary Union. America has recorded a balanced budget after five years of sharp trimming. In the transition countries, belt-tightening is a key part of free market reforms. So, are future generations now safe from fiscal profligacy now that hard fiscal discipline seems in place? Unfortunately, future generations remain under threat.
The problem is that balanced budgets and stable debt-to-national income ratios are poor indicators of generational equity. Why? Government promises made today but doled out tomorrow, such as social security payments, do not show up in annual budgets. Nor do standard accounting methods tell us which generation must ultimately pay for government consumption spending. An innovation called "generational accounting" sheds new light on the issue of generational equity.
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Since 1960, only a few countries in Latin America have narrowed the gap between their per capita income and that of the United States, while most of the region has lagged far behind. Making up for lost ground will require a coordinated effort, involving both technocratic tinkering and bold political leadership.
explain what it will take finally to achieve economic convergence with advanced economies.
Between now and the end of this decade, climate-related investments need to increase by orders of magnitude to keep the world on track toward achieving even more ambitious targets by mid-century. Fortunately, if done right, such investments could usher in an entirely new and better economy.
explains what it will take to mobilize capital for the net-zero transition worldwide.
BOSTON: Few people desire to saddle their children with mountains of debt as an inheritance. After decades of pushing the costs of today’s expenditures and promises onto future generations, that bit of family wisdom appears - at long last - to be influencing government policy.
Most West European countries lowered budget deficits to 3% of GDP to meet the terms for joining the European Monetary Union. America has recorded a balanced budget after five years of sharp trimming. In the transition countries, belt-tightening is a key part of free market reforms. So, are future generations now safe from fiscal profligacy now that hard fiscal discipline seems in place? Unfortunately, future generations remain under threat.
The problem is that balanced budgets and stable debt-to-national income ratios are poor indicators of generational equity. Why? Government promises made today but doled out tomorrow, such as social security payments, do not show up in annual budgets. Nor do standard accounting methods tell us which generation must ultimately pay for government consumption spending. An innovation called "generational accounting" sheds new light on the issue of generational equity.
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