Fiscal adjustment becomes like walking up the down escalator when growth-promoting spending is cut so much as to lower growth and thus the present value of future tax revenues to a degree that more than offsets the improvement in the cash deficit. Although short-term cash flows matter, a...

With a policy of free entry, individuals, firms, or community groups who wish to supply power, water, and sanitation services can do so with minimal legal restrictions. Free entry is the opposite of"exclusivity"or"legal monopoly". Free entry is allowed in most industries, but governments usually...