ECONIS Select – Fighting Sovereign Debt Crises Worldwide

06/2010

Selected for the Global Economic Symposium 2010

In dealing with the past financial crisis, have we sown the seeds for a national debt crisis? The massive increase in public debt that has resulted from the crisis is of particular concern. This rise of public debt has made it more difficult to use expansionary fiscal policies to fight the next crisis. Public debt is rising particularly fast in countries with ageing populations, threatening public confidence in the sustainability of their social security systems. It is conceivable that high public debt and a resulting downgrading of public bonds could in itself trigger a new crisis. Unless economic growth re-emerges faster than consensus projections, rising sovereign debts will likely present a serious problem in many countries.

• What are the appropriate fiscal exit strategies from the recent global economic crisis?
• What are the consequences of these crises on the global economic development?
• Is there a global strategy and what are its national impacts?
• How should the burden of fiscal consolidation be shared across social groups?
• How can governments strike the right balance between macroeconomic management and debt sustainability?
• How can government ensure that their debt burden does not rise faster than national product over the business cycle?
• Should the governments’ implicit assets and liabilities be counted along with the explicit ones in assessing the national debt burden?
• What fiscal strategies could ensure that governments are able to provide adequate fiscal stimulus in times of recession, while maintaining long-term fiscal rectitude?

Literature selected from our database ECONIS:

• Title: This time is different chartbook: country histories on debt, default, and financial crises / Carmen M. Reinhart
  Published: Cambridge, Mass., 2010
  Subject heading: Public Debt / Financial crisis / Sovereign insolvency / Credit rating / Economic crisis / Country studies / World / 1800-2009
  Link: http://www.nber.org/papers/w15815.pdf
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• Title: From financial crash to debt crisis / Carmen M. Reinhart; Kenneth S. Rogoff
  Published: Cambridge, Mass., 2010
  Subject heading: Financial crisis / Banking crisis / Public Debt / External debt / Economic History / World / 1865-2009
  Link: http://www.nber.org/papers/w15795.pdf
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• Article: Beyond the current crisis: how should Europe deal with government deficits and public debt in future? / Fabian Zuleeg and Hans Martens
  In: Liberalism in crisis?. - Cheltenham [u.a.]: Elgar, ISBN 978-1-8484-4530-7. - 2009, S. 148-177
  Subject heading: Economic liberalism / Financial crisis / Economic policy / Public Debt / EU countries / United States
• Article: Discussion of "policies to rebalance the global economy after the financial crisis" / Raf Wouters
  In: International journal of central banking. - Frankfurt, M.: European Central Bank, ISSN 1815-4654, ZDB-ID 21923334. - Bd. 6.2010, 1, S. 253-258
  Subject heading: Financial crisis / International financial market / International business cycle / Economic adjustment / Impact analysis / Budget deficit / Fiscal consolidation / United States
• Title: Debt consolidation and fiscal stabilization of deep recessions / Giancarlo Corsetti, Keith Kuester, André Meier and Gernot Müller
  Published: London: Centre for Economic Policy Research, 2010
  Subject heading: Financial crisis / Fiscal Policy / Public Expenditure / Monetary Policy / Fiscal consolidation / Forecast / Theory / 2008-2019
  Link: http://www.cepr.org/pubs/dps/DP7649.asp
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• Title: Fiscal stimulus and the promise of future spending cuts / Volker Wieland
  Published: London: Centre for Economic Policy Research, 2009
  Subject heading: Countercyclical fiscal policy / Fiscal Policy / Multiplier / Impact analysis / Crowding out / Disequilibrium model / Fiscal consolidation / Discretionary policy / World
  Link: http://www.cepr.org/pubs/dps/DP7615.asp
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• Article: Budgeting for fiscal space / by Allen Schick
  In: Organisation for Economic Co-operation and Development: OECD journal on budgeting. - Paris: Organisation for Economic Cooperation and Development, ISSN 1608-7143, ZDB-ID 20458538. - 2009, 2, S. 7-24
  Subject heading: Public Budget / Fiscal consolidation / OECD countries
• Article: Prospects for fiscal consolidation in Europe / Dawn Holland; Ray Barrell; Tatiana Fic; Ian Hurst; Iana Liadze ...
  In: National Institute of Economic and Social Research: National Institute economic review. - London: Sage, ISSN 0027-9501, ZDB-ID 2419002. - Bd. 210.2009, S. 25-35
  Subject heading: Fiscal consolidation / EU countries
• Title: Sustainability of public debt / ed. by Reinhard Neck and Jan-Egbert Sturm
  Published: Cambridge, Mass. [u.a.]: MIT Press, c 2008
  Subject heading: Public Debt / Fiscal Policy / Sovereign insolvency / Fiscal consolidation / United States / EU countries
  Link: Table of contents
• Article: Fiscal consolidation in the euro area: long-run benefits and short-run costs / Günter Coenen; Matthias Mohr; Roland Straub
  In: Economic modelling. - Amsterdam [u.a.] Elsevier, ISSN 0264-9993, ZDB-ID 868243. - Bd. 25.2008, 5, S. 912-932
  Subject heading: Fiscal consolidation / Fiscal Policy / European Economic and Monetary Union / Theory / EU countries
• Title: Banking and debt crisis in Europe: the dangerous liaisons? / Bertrand Candelon; Franz Palm
  Published: München: CESifo, 2010
  Subject heading: Public Debt / Country risk / Currency crisis / Euro / Banking crisis / Financial crisis / Euro area
  Link: http://www.cesifo-group.de/DocCIDL/cesifo1_wp3001.pdf
• Article: Debt and currency crises - complements or substitutes? / Bernhard Herz and Hui Tong
  In: Review of international economics . - Oxford [u.a.]: Blackwell, ISSN 0965-7576, ZDB-ID 11617573. - Bd. 16.2008, 5, S. 955-970
  Subject heading: Public Debt / Currency crisis / Causality analysis
• Title: Comeback America: turning the country around and restoring fiscal responsibility / David M. Walker
  Published: New York, NY: Random House, c 2009
  Subject heading: Fiscal Policy / Fiscal consolidation / Fiscal reform / United States
  Link: Table of contents
• Title: The political economy of balanced-budget rules / Jérôme Creel; Etienne Farvaque
  Published: Apr. 2009
  Subject heading: Budget deficit / Fiscal Policy / Policy rules / Fiscal consolidation / United States
  Link: http://www.ofce.sciences-po.fr/pdf/dtravail/WP2009-06.pdf
• Title: Fiscal Taylor rules in the postwar United States / by Christopher P. Reicher
  Published: Kiel: Kiel Inst. for the World Economy, 2009
  Subject heading: Fiscal Policy / Taylor rule / Budget deficit / Fiscal consolidation / Social transfer / United States / 1947-2008
  Link: http://www.ifw-members.ifw-kiel.de/publications/fiscal-taylor-rules-in-the-postwar-united-states-2/kwp-1509 http://hdl.handle.net/10419/28337
  [Download: 24.04.2009]
• Title: Fiscal sustainability and policy implications for the euro area / by Fabrizio Balassone, Jorge Cunha, Geert Langenus, Bernhard Manzke, Jeanne Pavot ...
  Published: Frankfurt am Main: European Central Bank, 2009
  Subject heading: Aging population / Public Expenditure / Generational accounting / Fiscal Policy / Sustainability / EU countries / 2003-2050
  Links:
  http://www.pedz.uni-mannheim.de/daten/edz-ki/ezb/09/w-paper/ecbwp994.pdf http://www.ecb.int/pub/pdf/scpwps/ecbwp994.pdf
• Title: Self-fulfilling and self-enforcing debt crises / Daniel Cohen and Sébastien Villemot
  Published: London: Centre for Economic Policy Research, 2008
  Subject heading: External debt / Public Debt / Currency crisis / Announcement effect / World / 1970-2004
  Link: http://www.cepr.org/pubs/dps/DP6718.asp
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• Title: Rotten parents and disciplined children: a politico-economic theory of public expenditure and debt / Zheng Song; Kjetil Storesletten; Fabrizio Zilibotti
  Published: 07 Nov. 2007
  Subject heading: Fiscal Policy / Public Debt / Political decision / Political party / Voting behaviour / Generational accounting / Public choice / Estimation / OECD countries
• Article: Distributional effects of fiscal consolidation / Svend E. Hougaard Jensen; Thomas F. Rutherford
  In: The Scandinavian journal of economics. - Oxford: Blackwell, ISSN 0347-0520, ZDB-ID 8170x. - Bd. 104.2002, 3, S. 471-493
  Subject heading: Fiscal consolidation / Public Good / Income distribution / Age group / Poverty / Denmark / 1992
• Title: Generational accounting around the world / ed. by Alan J. Auerbach ...
  Corporate body: National Bureau of Economic Research
  Published: Chicago [u.a.]: Univ. of Chicago Press, 1999
  Subject heading: Generational accounting / |stw| World
  Links:
  Publisher description
  Table of contents