Fiscal limits in advanced economies
By: Eric M. Leeper, Todd B. Walker
Contributors: Walker, Todd B. (Todd Bruce); National Bureau of Economic Research
Series: NBER working paper series -- working paper 16819; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16819.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Aging populations in advanced economies are placing ever-increasing demands on government spending in the form of old-age benefits.  Economies that have promised substantially more benefits than they have made provision to finance are heading into a prolonged era of fiscal stress.  Unresolved fiscal stress raises the possibility that the economies will hit their fiscal limits where taxes and spending no longer adjust to stabilize debt.  In such economies, monetary policy may lose its ability to control inflation and influence the economy in the usual ways.  The paper discusses models of fiscal limits and their implications and lays out a research agenda to integrate political economy and empirical considerations with general equilibrium models of monetary and fiscal interactions"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 5/19/2011.

Includes bibliographical references.

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