US Pension Reform: Lessons from Other Countries

Baily (economics, Brookings Institution) and Kirkegaard (economics, Peterson Institute for International Economics) use pension reform programs from other developed nations to analyze the design of US Social Security, noting that while this fund is economically sound, it does require a remedy for fiscal imbalances. The authors look at pension systems in the UK, France, Germany and Japan and describe the corrections that had to made to these programs in the face of stagnant economies and aging populations. Written for policymakers and economists, this book describes a mixed strategy of targeted benefit adjustments, continued adjustments of retirement age and a system of add-on individual accounts that may be an effective overall approach. Annotation c2009 Book News, Inc., Portland, OR (booknews.com)

Chairman of the Council of Economic Advisers during the Clinton administration and one of three members of the council from '94 to '96. Senior fellow at the Peterson Institute (2001-2007) and current senior fellow at the Brookings Institution. Academic advisor to the Congressional Budget Office and associate editor of the Journal of Economic Perspectives.