Fiscal sustainability and fiscal policy targets

摘要: Analyses of fiscal sustainability have become integral parts policy planning due to high debt levels and projected demographic changes. A popular metric by which evaluate gaps is the so-called S2 given as permanent change in primary budget balance (relative GDP) needed meet intertemporal constraint. While a very useful it also suffers from some problems, paper discusses problems with this way assess problems. particular important issue extent indicator can be normative interpretation, extensively discussed. The ends discussing formulation targets ensure sustainability. JEL: E6, H6 Keyworks: Fiscal sustainability, Intergeneration distribution, risk sharing, intermediate This draws on work Swedish Policy Council based various presentations Stockholm, Reykjavik, Helsinki Oslo. Comments suggestions are gratefully acknowledged.