The phenomenon of substantial peacetime budget deficits over the past20 years has been traced to the burden of entitlements, a slowdown ineconomic productivity, and demographic and macroeconomic shifts in theindustrial countries. Though smaller and structurally different, deficitsin developing countries have also become worrisome. Most economists agreethat measures to reduce government spending are imperative, particularlythrough restructuring entitlement programs
Notes
Guillermo and Michèle de la Dehesa Legacy Collection
"Draws on material originally contained in IMF Working Paper 95/128, 'Long-Term Tendencies in Budget Deficits and Debts', by Paul R. Masson and Michael Mussa"--Preface
