From The Institute of Economic Affairs and The Heritage Foundation:
Monetary Policy/Financial Regulation
Crisis of Governments
by Robert Barro
Institute of Economic Affairs
December 20, 2011
The next crisis will be a crisis of government debt. This debt consists of both explicit borrowing and also of entitlements through social security programmes that have been dramatically expanded under Presidents Bush and Obama. This crisis of government debt is not just a US problem. The coming crisis can be addressed in the USA only by reforming entitlement programmes and also by tax reform to reduce ‘tax expenditures’ or special exemptions from taxes for certain types of economic activity. In the EU, fiscal and monetary policy need to be decoupled so that member states do not become responsible for each other’s borrowing.
URL: www.iea.org.uk/sites/default/files/publications/files/Crises%20of%20Government.pdf
Monetary Policy/Financial Regulation
Crisis of Governments
by Robert Barro
Institute of Economic Affairs
December 20, 2011
The next crisis will be a crisis of government debt. This debt consists of both explicit borrowing and also of entitlements through social security programmes that have been dramatically expanded under Presidents Bush and Obama. This crisis of government debt is not just a US problem. The coming crisis can be addressed in the USA only by reforming entitlement programmes and also by tax reform to reduce ‘tax expenditures’ or special exemptions from taxes for certain types of economic activity. In the EU, fiscal and monetary policy need to be decoupled so that member states do not become responsible for each other’s borrowing.
URL: www.iea.org.uk/sites/default/files/publications/files/Crises%20of%20Government.pdf
No comments:
Post a Comment