Corpus ID: 55034154

Fiscal sustainability and fiscal policy targets

  title={Fiscal sustainability and fiscal policy targets},
  author={T. Andersen},
Analyses of fiscal sustainability have become integral parts of fiscal policy planning due to high debt levels and projected demographic changes. A popular metric by which to evaluate sustainability gaps is the so-called S2 metric given as the permanent change in the primary budget balance (relative to GDP) needed to meet the intertemporal budget constraint. While a very useful metric it also suffers from some problems, and the paper discusses some of the problems with this metric as a way to… Expand

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