the goal of measuring what is to Focus on present fiscal imbalances
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Obligations and income streams are measured at their respective present values and discounted at the risk-free rate plus a certain spread. If a government incurs a sustained fiscal imbalance, then tax burdens will likely increase in the future, causing current and future household consumption to fall.
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Obligations and income streams are measured at their respective present values and discounted at the risk-free rate plus a certain spread. If a government incurs a sustained fiscal imbalance, then tax burdens will likely increase in the future, causing current and future household consumption to fall.
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