Why is fiscal sustainability important?
Why is fiscal sustainability important? Fiscal sustainability is an important element that has a fundamental impact on both. What is crucially important is to prevent the economy from getting into such a tradeoff in the first place; for that reason, fiscal sustainability itself is an essential precondition for the proper functioning of a central bank. What is meant by fiscal sustainability? Fiscal sustainability is the ability of a government to maintain public finances at a credible and serviceable position over the long term. How is fiscal sustainability determined? Sustainability is defined in a rather standard way - fiscal policy is...