Table of Contents

Introduction
I. Economic performance and prospects 
-Employment, output and inflation 
-The composition of demand 
-Short-term prospects and risks
II. Monetary policy, financial strains and inflation control
-Monetary policy implementation
-Strains in the financial sector
-Inflation expectations and the yield curve
III. External adjustment: progress, prospects and policies
-Progress towards external adjustment
-External debt and medium-term sustainability
-Trade policy, the Trade Act and bilateral imbalances
IV. Public sector issues
-A. Spending pressures, revenue constraints and the Federal deficit
--Spending pressures
--Defects in budgetary control
--The need for further tax reform
-B. National saving, public infrastructure and economic growth
--The public sector and national saving
--Public investment and productivity growth
--Investment in human capital
--Research and development
-C. Decentralisation, public choice and efficiency
--Re-assigning responsibilities to the states
--Federal grants and tax subsidies
--Shaping state and local tax systems
V. Conclusions
Notes and references
Annex: Calendar of main economic events 
Statistical and Structural annex