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Defining the government's debt and deficit

JULY 21, 2016 | by Timothy Irwin | INTERNATIONAL MONETARY FUND

By Timothy Irwin, from November 2015, includes "Although the budget deficit and the public debt feature prominently in political debate and economic research, there is no agreement about how they should be measured. ... Each debt and deficit measure says something about public finances, but none tells the whole story. Each is also vulnerable to manipulation, and is likely to be manipulated if it is subject to a binding fiscal rule or target. ... governments should publish several measures of the debt and deficit in a form that clearly reveals their interrelationships."

 

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