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But I do not want to leave you with the impression that targets are mechanical rules to be followed slavishly. For example, fiscal targets must allow for inevitable shortfalls or surpluses of revenues because of unanticipated developments. What is critical here is that such targets be based on the longer-term needs of a particular country. Thus, for us in Canada and the United States, it is appropriate that we focus on a reduction, over the medium term, in the level of our public debt, so that we will be able to cope with demographic pressures 10 or 20 years out. It is for this reason that Canada's most recent federal budget sets an explicit target for reducing the ratio of public debt to GDP to 25 per cent within 10 years. For us in Canada, this makes sense. Similar action would make sense in the United States. But, in countries with young and growing populations, different approaches might be needed.
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