30/06/15-Government debt in many OECD countries is very high and likely to have adverse effects on economic activity. New OECD research shows how governments can set country-specific prudent debt targets and which fiscal rules will ensure hitting them.
Achieving prudent debt targets using fiscal rules shows that the current high government debt levels raise questions about both sustainability and impact on economic activity. How should government debt targets be set? What are the prudent debt levels countries should target over the medium term? How should fiscal frameworks, and in particular fiscal rules, be designed, to ensure that prudent debt targets are met, while accommodating cyclical fluctuations?
The lecture, which is open to the media, will discuss the best policy responses to ensure that debt paths are on a sustainable track. It will highlight new analysis undertaken by the OECD.
The OECD report will be released at 3.00 p.m. Paris time on Friday, 3 July 2015.
To register for the Aix-en-Provence lecture, to request a copy of the report under embargo, or for further information, journalists should contact Lawrence Speer in the OECD Media Division (tel. + 33 1 45 24 97 00).