In Defense of Public Debt

The book "In Defense of Public Debt" argues that sovereign debt has been crucial for governments to address emergencies, fund public goods and services, and promote economic growth. It provides a historical overview of public debt, identifies factors behind rising debts, and discusses the role of public debt in managing the Covid-19 pandemic and recession.

\n Format: Hardback
\n Length: 320 pages
\n Publication date: 25 November 2021
\n Publisher: Oxford University Press Inc
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Sovereign debt has been a significant aspect of economic history, with its origins dating back to ancient times. Governments have used it as a tool to finance their operations and address various emergencies, such as wars, pandemics, and economic crises. However, the level of public debt has reached unprecedented heights in recent years, particularly in response to the COVID-19 pandemic and its economic consequences. This has led to concerns about the dangers of heavy debts, including their impact on economic growth and the burden they will place on future generations.

In Defense of Public Debt, a book by authors Barry Eichengreen, Asmaa El-Ganainy, Rui Esteves, and Kris James Mitchener, challenges the notion that public debt is inherently harmful. The authors argue that sovereign debt can be a valuable tool for governments in times of need. They trace the history of state-issued public debt and demonstrate how it has played a critical role in addressing emergencies, funding essential public goods and services, and promoting economic growth.

The authors argue that the ability of governments to issue debt has been integral to state building and state survival. Public debt securities have helped to develop private financial markets, which have contributed to modern economic growth. The book also acknowledges that debt problems, debt crises, and debt defaults can occur, but these dramatic events are not the entire story.

The authors develop their arguments historically, recounting two millennia of public debt experience. They deploy a comprehensive database to identify the factors behind rising public debts and the circumstances under which high debts are successfully stabilized and brought down. The book also brings the story up to date, describing the role of public debt in managing the COVID-19 pandemic.

In conclusion, Sovereign debt has been a controversial topic throughout history. In Defense of Public Debt offers a compelling argument that public debt can be a valuable tool for governments in times of need. The book provides a comprehensive historical analysis of public debt and demonstrates how it has played a critical role in addressing emergencies, funding essential public goods and services, and promoting economic growth. While debt problems, debt crises, and debt defaults can occur, these events are not the entire story. By understanding the history and uses of sovereign debt, policymakers can make informed decisions about how to manage public finances and ensure the long-term stability of economies.

\n Weight: 632g\n
Dimension: 243 x 166 x 32 (mm)\n
ISBN-13: 9780197577899\n \n