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The Fiscal Challenge of an Aging Population

There’s a demographic time bomb that’s about to go off. Here’s what governments should do to get their finances in order.

Global economic growth is picking up, monetary policy is still extremely loose and nowhere is there a threat that a deflationary spiral might develop. Yet the demand for expansionary fiscal policies is still prominent. Meanwhile, government deficits remain too high to bring down record levels of public debt. It’s time to change the orientation of fiscal policy to deal with public finances again and wake up to the demographic time bomb that’s about to go off. Read more…

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