Public Debt Sustainability: International Perspectives

Debrun argues that there is no consensus on the optimum design and enforcement of fiscal rules, and this book provides an opportunity for scholars to explore these questions from an international perspective.

Format: Paperback / softback
Length: 388 pages
Publication date: 15 May 2024
Publisher: Lexington Books

As countries around the world continue to grapple with the devastating impact of the coronavirus pandemic, they are now facing an even more daunting challenge: a debt crisis of unprecedented proportions. In his foreword to the book, Xavier Debrun highlights the fact that there is no longer a consensus regarding the optimum design and enforcement of fiscal rules, and that we must address a series of questions and challenges to the conventional wisdom. This book provides a unique opportunity for scholars to explore these questions from an international perspective, with reference to European countries, emerging nations, and the United States.

One of the key challenges facing countries is the high level of public debt. Many governments have taken on significant amounts of debt to support their economies during the pandemic, and this debt has now become a major burden on their finances. The book explores the various factors that have contributed to the high level of public debt, including government spending, tax policies, and economic growth. It also examines the different strategies that countries have used to address their debt, including austerity measures, debt restructuring, and fiscal stimulus.

Another challenge facing countries is the impact of the pandemic on their economies. The pandemic has caused widespread job losses, business closures, and economic uncertainty, which has led to a decline in tax revenue. This has made it difficult for countries to meet their debt obligations, and has led to calls for more government spending to support the economy. However, the book argues that this approach is not sustainable in the long term, and that countries need to focus on implementing structural reforms to improve their economic performance.

One of the structural reforms that the book discusses is the need to reduce government spending. The book argues that government spending is often inefficient and wasteful, and that it can be reduced by implementing measures such as privatization, deregulation, and reducing the size of the public sector. It also argues that government spending should be focused on areas that are critical to economic growth, such as education, healthcare, and infrastructure.

Another structural reform that the book discusses is the need to improve tax policies. The book argues that tax policies should be designed to promote economic growth and reduce inequality. It also argues that tax policies should be transparent and fair, and that they should be implemented in a way that does not create undue burdens on businesses.

In addition to these structural reforms, the book also discusses the need to address the impact of the pandemic on the financial system. The pandemic has caused significant disruptions to the financial system, and has led to a decline in the value of assets. This has made it difficult for banks to lend, and has led to calls for more government intervention to support the financial system.

The book also discusses the role of international organizations in addressing the debt crisis. The book argues that international organizations such as the International Monetary Fund (IMF) and the World Bank have played a critical role in providing financial assistance to countries during the pandemic. However, the book also argues that these organizations have been too slow to respond to the crisis, and that they have imposed harsh austerity measures on countries that have been struggling to repay their debts.

In conclusion, the book provides a comprehensive overview of the debt crisis facing countries around the world. It highlights the fact that there is no longer a consensus regarding the optimum design and enforcement of fiscal rules, and that we must address a series of questions and challenges to the conventional wisdom. The book provides a unique opportunity for scholars to explore these questions from an international perspective, with reference to European countries, emerging nations, and the United States. By implementing structural reforms and addressing the impact of the pandemic on the financial system, countries can begin to rebuild their economies and reduce their debt levels.

Dimension: 239 x 160 (mm)
ISBN-13: 9781666902587