Public Debt Sustainability: International Perspectives

Countries are recovering from the pandemic and facing a debt crisis. There is no consensus on the optimum design and enforcement of fiscal rules, so this readings book provides an opportunity for scholars to explore these questions from an international perspective.

Format: Hardback
Length: 388 pages
Publication date: 15 January 2022
Publisher: Lexington Books

As countries navigate their recovery from the devastating impact of the coronavirus pandemic, they are now faced with an even more formidable challenge: the looming debt crisis. In the foreword, Xavier Debrun emphasizes the absence of a consensus regarding the optimal design and enforcement of fiscal rules, urging us to confront a series of critical questions and challenges to the prevailing wisdom. This comprehensive readings book offers scholars a unique opportunity to delve into these profound inquiries, drawing from a global perspective, encompassing European countries, emerging nations, and the United States.

The pandemic has left a profound and lasting impact on economies worldwide, with many countries struggling to cope with the unprecedented economic downturn. As governments implement measures to support their populations and businesses, the resulting debt levels have soared, posing a significant threat to long-term economic stability. The lack of consensus on fiscal rules further exacerbates the situation, as different countries adopt varying approaches to address their financial challenges.

One of the key challenges facing countries is the need for sustainable debt management. As debt levels continue to rise, there is a growing concern that some countries may be unable to repay their debts, leading to economic crises and social unrest. To address this, scholars must explore innovative solutions and policies that can help countries manage their debt effectively while promoting economic growth and social well-being.

Another important aspect to consider is the role of fiscal rules in shaping economic outcomes. Fiscal rules are regulations or guidelines that govern the government's fiscal behavior, such as spending, taxation, and borrowing. The design and enforcement of these rules can have a significant impact on economic growth, inequality, and stability. However, there is ongoing debate about the most effective and sustainable approach to fiscal rules, with different scholars offering differing perspectives.

In addition to these challenges, countries must also navigate the complex relationship between fiscal rules and economic development. While fiscal rules can be a tool for promoting stability and reducing debt, they can also hinder economic growth and innovation. Therefore, policymakers must carefully consider the trade-offs between different policy options and strive to find a balance that supports both long-term economic stability and sustainable development.

To address these complex challenges, this readings book provides a comprehensive examination of fiscal rules from an international perspective. It includes contributions from leading scholars and policymakers from various countries, offering insights into the different approaches and experiences of different nations. The book explores the historical context, theoretical foundations, and practical implications of fiscal rules, providing a valuable resource for scholars, policymakers, and anyone interested in understanding the role of fiscal rules in shaping economic outcomes.

In conclusion, as countries recover from the pandemic, they are confronted with an even more challenging debt crisis. The absence of consensus on fiscal rules highlights the need for critical inquiry and innovative solutions. This readings book provides a valuable platform for scholars to explore these questions from a global perspective, drawing from European countries, emerging nations, and the United States. By examining the role of fiscal rules in shaping economic outcomes, policymakers can develop effective strategies for sustainable debt management, promote economic growth, and ensure social well-being for generations to come.

Dimension: 229 x 152 (mm)
ISBN-13: 9781666902563