Economics, Econometrics and Finance
4 years ago

Sustainability area not reliable measure for public finance stability.

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SSRN Electronic Journal
Notes And Comments. On The Sustainability Area As A Simplifying Didactic Device
Søren Harck

Paper Summary

The idea of the sustainability area in public finance is meant to simplify how we look at fiscal sustainability. However, just being in this area doesn't mean public finances are sustainable. Simply put, being in the sustainability area doesn't guarantee fiscal sustainability.

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