Debt Hampers Response to Changing Economy: IMFBlog

The International Monetary Fund warns that public debt combined with slowed economic growth could constrain future government spending on education, employment, healthcare, infrastructure and retirement. The IMF advises policymakers to encourage more inclusive growth by reducing debt and investing in the futures of their citizens by reducing tax exemptions and improving tax administration. “The shift in demographics along with new technologies are having a profound impact on economic growth and the distribution of incomes and wealth,” notes an article for the IMFBlog. Each nation must prepare its own strategy to adapt to global trends while reducing debt. The team of writers offers suggestions: reduce inefficient spending like energy subsidies, invest in continuous upgrading of skills, reduce corruption, expand revenue collection while improving management of government financial assets, and reduce inequality with progressive income taxes. – YaleGlobal

Debt Hampers Response to Changing Economy: IMFBlog

Increased public debt combined with slowing economic growth constrains future investment in education, health care, retirement and infrastructure
Vitor Gaspar, John Ralyea, and Elif Ture
Monday, April 15, 2019

Mixed bag: Debt varies around countries, complicated by currency values (Source: World Population Review and IMF)

Read the article from the IMFBlog about how government debt constrains future opportunities.

Vitor Gaspar, a Portuguese national, is Director of the IMF’s Fiscal Affairs Department. Prior to joining the IMF, he held a variety of senior policy positions in Banco de Portugal, including most recently as Special Adviser. John Ralyea is a Senior Economist in the IMF’s Fiscal Affairs Department. Previously, he worked in the IMF’s European department, with stints on the Romania, Slovakia, Slovenia, and Spain teams, and in the Finance department. Prior to joining the IMF, he worked for the U.S. Treasury Department. Elif Ture, from Turkey, is an economist in the IMF’s Fiscal Affairs Department (FAD), where she works on European fiscal issues as part of the euro area team and contributes to the Fiscal Monitor. In FAD, she has worked on fiscal risks from contingent liabilities, fiscal rules, fiscal federalism, and fiscal governance in Europe.       

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