Surprise! Budget Deficits of Most Nations Are Falling

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If world economics is a jungle, nations are out for big game. Over the last few years, they have tracked down and largely tamed the inflation tiger. Now, another beast is attracting their attention: budget deficits.

After two decades of running up debts, many of the world's nations are making headway cutting annual deficits. If this continues, it will help buoy the growth that is already occurring in most corners of the world.

The latest evidence comes from the International Monetary Fund (IMF). "World economic and financial conditions remain generally encouraging ... and the global economic expansion is expected to continue at a satisfactory pace in 1996-97 and …