In particular, looking back over the past twenty years or so, it has been evident that the prospect of large deficits generally has led to actions to narrow them. I trust that the recent deterioration in the budget outlook and the fast-approaching retirement of the baby-boom generation will be met with similar determination and effectiveness. BIS Review 48/2003  3
It may be a necessary, but not sufficient, condition for growth, as the Irish experience of the 1980s shows. The supply of capital is another key element in an economy's growth potential, whether that reflects domestic capital accumulation or, as in Ireland's case, significant foreign direct investment inflows. Again, the story here is quite complex.