Introduction to Fiscal Accountability and Population Aging

For most of the past three decades Korea successfully held its public debt at a low level, leaving ample fiscal space even in the aftermath of the global financial crisis. In recent years, however, a noticeable slow-down in the growth rate and rapid population aging, combined with unexpected serial fiscal deficits, have posed concerns for long-run fiscal sustainability. In the U.S., the Federal government confronts similar problems associated with the funding of its primary retirement programs, Social Security and Medicare. This book examines current fiscal framework of Korea and the United States, including fiscal institutions and government expenditures, and assessed it from the perspective of the government’s fiscal accountability. Analyzing the public policies of Korea and the United States illustrate that two very different countries face similar challenges concerning the fiscal accountability and aging of their populations.