In-depth analysis of problems confronting both the U.S. budget and job market, while presenting a logical remedy for each dilemma. Problems addressed include the growing entitlement spending caused by increased lifespan since passing Medicare and Social Security, military spending on overseas...

The present paper treats the issue of economic foundations, on which political power rests, and the specific problem of public debt in the developed countries. Starting from the general question: “Why do rich governments borrow so much?” the paper develops a model of political power based on...

December 1999 <p> This papers develops a theory of intergenerational exchange for generations that are either selfish or have non-dynastic altruism. The main building blocks of the theory are forward and backward intergenerational goods (FIGs and BIGs) and the relationship between them. A FIG is a...</p>

We investigate the effect of financial liberalization on the probability of a banking crises in economies with poor transparency We construct a model with imperfect information where banks cannot distinguish between aggregate shocks on the one hand, and government’s policy and firms’...

This CPB Discussion Paper proposes indicators to assess government debt sustainability. Sustainable government finances can be achieved via three main channels: fiscal responses, economic growth and financial repression. The fiscal response provides information on the long-term country specific...

This paper outlines some issues regarding the interaction of independent fiscal authorities and one central bank in the European monetary union.It points out the possibilities for coordination failures,ranging everywhere from potentially excessive deficits and free-riding problems to...

Due to the very large number of local units in the Republic of Croatia, the system of collecting income is mainly insufficient for quality and functional financing of public needs on the local and regional levels. It is therefore necessary to continue the search for new models of regulating...

The economic crisis of 2008–2009 will be known as the day when the creator knelt before its creation (Syll, 2010). Amid such economic mess created by economists (and so-called engineers) themselves, there seems to be a single economic perspective: every man for himself and save yourself if you...