Further fiscal adjustment is needed in most advanced economies to bring down debt ratios to safer levels,
but issues of pace and composition should increasingly take center stage. In particular, as disappointing growth outcomes fuel risks of persistent low inflation and
adjustment fatigue, policies should strive to include elements supportive of a faster rebound in growth and employment within the constraints often imposed by
limited fiscal space (Chapter 2 elaborates on the scope for fiscal policy to support labor market reform).