{"product_id":"chipping-away-at-public-debt-isbn-9781118043387","title":"Chipping Away at Public Debt","description":"\u003cb\u003ePath-breaking research on one of the most important macroeconomic policy challenges in the post-crisis world, presented in accessible language\u003c\/b\u003e  \u003cp\u003eWritten and researched by a team of experts from the International Monetary Fund, other policy-making institutions, and academia, this timely book looks at fiscal adjustment plans in advanced economies, comparing the planned or projected reductions in debts and deficits to the actual outcomes, and explaining why objectives were met in some cases but missed in others. An overview reveals pitfalls to avoid and lessons learned for securing successful fiscal adjustment.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eWritten by experts in the field\u003c\/li\u003e \u003cli\u003eAddresses public concern about skyrocketing government debts\u003c\/li\u003e \u003cli\u003eContains cutting edge research that changes the way we look at fiscal adjustment\u003c\/li\u003e \u003cli\u003ePresents meticulous archival research in compelling and engaging case studies\u003c\/li\u003e \u003cli\u003eExplores lessons learned and policy implications going forward\u003c\/li\u003e \u003cli\u003eIncludes country coverage of all G7 and European Union economies\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eEducating and informing investors, economists, and the general public, this important book looks at why some attempts to curb debts and deficits succeed whereas others fail, as well as how to ensure successful fiscal adjustment in the period ahead.\u003c\/p\u003e  Foreword ix  \u003cp\u003eAcknowledgments xi\u003c\/p\u003e \u003cp\u003eIntroduction xiii\u003c\/p\u003e \u003cp\u003eCHAPTER 1 Canada: A Success Story 1\u003cbr\u003e \u003ci\u003eCemile Sancak, Lucy Qian Liu, and Taisuke Nakata\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003eBackground 2\u003c\/p\u003e \u003cp\u003ePlans versus Outcomes: Macroeconomic Factors 7\u003c\/p\u003e \u003cp\u003eNature and Composition of Adjustment 13\u003c\/p\u003e \u003cp\u003eStructural Reforms 21\u003c\/p\u003e \u003cp\u003eExtent to which Adjustments Were Sustained 23\u003c\/p\u003e \u003cp\u003eConclusion 25\u003c\/p\u003e \u003cp\u003eNotes 27\u003c\/p\u003e \u003cp\u003eCHAPTER 2 United States: The Quest for Fiscal Discipline 31\u003cbr\u003e \u003ci\u003eJiri Jonas\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 31\u003c\/p\u003e \u003cp\u003eFirst Attempt: Balanced Budget and Emergency Deficit Control Act 1985 33\u003c\/p\u003e \u003cp\u003eSecond Attempt: Omnibus Budget Reconciliation Act of 1990 36\u003c\/p\u003e \u003cp\u003eThird Attempt: Omnibus Budget Reconciliation Act of 1993 38\u003c\/p\u003e \u003cp\u003eActual versus Projected Fiscal Performance under Omnibus Budget Reconciliation Act of 1993 42\u003c\/p\u003e \u003cp\u003e1990s Deficit Reduction: Good Policy or Good Luck? 44\u003c\/p\u003e \u003cp\u003eEasy Won, Easy Lost? 50\u003c\/p\u003e \u003cp\u003eConclusion 52\u003c\/p\u003e \u003cp\u003eNotes 54\u003c\/p\u003e \u003cp\u003eCHAPTER 3 France: Virtue and Fortune 57\u003cbr\u003e \u003ci\u003eEdouard Martin, Irina Tytell, and Irina Yakadina\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction: Factors Underlying the Need for Fiscal Consolidation 57\u003c\/p\u003e \u003cp\u003eEarly Attempts at Fiscal Adjustment 61\u003c\/p\u003e \u003cp\u003eA First Attempt at Medium-Term Fiscal Consolidation, 1994–97 64\u003c\/p\u003e \u003cp\u003eA More Systematic Approach to Medium-Term Budgeting: Consolidation Experiences under the Stability and Growth Pact 72\u003c\/p\u003e \u003cp\u003eConclusion 81\u003c\/p\u003e \u003cp\u003eNotes 82\u003c\/p\u003e \u003cp\u003eCHAPTER 4 Germany: Fiscal Adjustment Attempts With and Without Reforms 85\u003cbr\u003e \u003ci\u003eChristian Breuer, Jan Gottschalk, and Anna Ivanova\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 85\u003c\/p\u003e \u003cp\u003e1975–79 Consolidation Attempt 88\u003c\/p\u003e \u003cp\u003e1981–85 Consolidation Attempt 93\u003c\/p\u003e \u003cp\u003e1991–95 Consolidation Attempt 99\u003c\/p\u003e \u003cp\u003e2003–07 Consolidation Attempt 105\u003c\/p\u003e \u003cp\u003eLessons 110\u003c\/p\u003e \u003cp\u003eNotes 112\u003c\/p\u003e \u003cp\u003eCHAPTER 5 United Kingdom: Four Chancellors Facing Challenges 115\u003cbr\u003e \u003ci\u003eToni Ahnert, Richard Hughes, and Keiko Takahashi\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 115\u003c\/p\u003e \u003cp\u003eSelection of Consolidation Plans 116\u003c\/p\u003e \u003cp\u003eBackground, Content, and Performance of the Four Adjustment Plans 117\u003c\/p\u003e \u003cp\u003eDeterminants of Success and Failure 125\u003c\/p\u003e \u003cp\u003eLessons from Success and Failure 138\u003c\/p\u003e \u003cp\u003eAppendix 5A. United Kingdom: Fiscal Adjustment Plans and Outturns 140\u003c\/p\u003e \u003cp\u003eNotes 150\u003c\/p\u003e \u003cp\u003eCHAPTER 6 Italy: Medium-Term Fiscal Planning under Frequent Government Changes 153\u003cbr\u003e \u003ci\u003eFabrizio Balassone, Sandro Momigliano, and Pietro Rizza\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 153\u003c\/p\u003e \u003cp\u003eA Brief History of Italy’s Fiscal Planning Framework 155\u003c\/p\u003e \u003cp\u003eShort-Term Origins of Medium-Term Failures 157\u003c\/p\u003e \u003cp\u003eA Narrative of Design and Performance of Pre- and Post-European Monetary Unit Plans 162\u003c\/p\u003e \u003cp\u003eImplementing Plans for the Year Ahead 165\u003c\/p\u003e \u003cp\u003eTwo Important Plans Analyzed in Detail 167\u003c\/p\u003e \u003cp\u003eConclusion 172\u003c\/p\u003e \u003cp\u003eNotes 174\u003c\/p\u003e \u003cp\u003eCHAPTER 7 Japan: Fiscal Adjustment Plans and Macroeconomic Shocks 177\u003cbr\u003e \u003ci\u003eKeiko Takahashi and Kiichi Tokuoka\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 177\u003c\/p\u003e \u003cp\u003eThe 1997 Fiscal Structural Reform Act 178\u003c\/p\u003e \u003cp\u003eMedium-Term Fiscal Adjustment Plans: Fiscal Year 2002 and the Following 189\u003c\/p\u003e \u003cp\u003eConclusion 203\u003c\/p\u003e \u003cp\u003eAppendix 7A: The Bohn Fiscal Sustainability Test 206\u003c\/p\u003e \u003cp\u003eAppendix 7B: Timeline of Medium-Term Fiscal Adjustment Plans in Japan 209\u003c\/p\u003e \u003cp\u003eNotes 209\u003c\/p\u003e \u003cp\u003eCHAPTER 8 The Performance of Large Fiscal Adjustment Plans in the European Union: A Cross-Country Statistical Analysis 213\u003cbr\u003e \u003ci\u003eS. Ali Abbas, Fuad Hasanov, Paolo Mauro, and Junhyung Park\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 213\u003c\/p\u003e \u003cp\u003eData, Sample Selection, and Methodology 216\u003c\/p\u003e \u003cp\u003eDescriptive Analysis 219\u003c\/p\u003e \u003cp\u003eRegression Analysis 232\u003c\/p\u003e \u003cp\u003eConclusion 241\u003c\/p\u003e \u003cp\u003eAppendix 8A: Data Issues and Cyclical Adjustment 243\u003c\/p\u003e \u003cp\u003eAppendix 8B: Timeline for European Monetary Integration (1990–2009) 245\u003c\/p\u003e \u003cp\u003eNotes 246\u003c\/p\u003e \u003cp\u003eCHAPTER 9 Conclusion 249\u003c\/p\u003e \u003cp\u003eKey Findings: What Failed and What Worked in Past Attempts at Fiscal Adjustment 251\u003c\/p\u003e \u003cp\u003eImplications for Planned Adjustments 255\u003c\/p\u003e \u003cp\u003eNotes 258\u003c\/p\u003e \u003cp\u003eReferences 259\u003c\/p\u003e \u003cp\u003eAbout the Project Team 267\u003c\/p\u003e \u003cp\u003eIndex 271\u003c\/p\u003e  \"This analytical cross-country study of fiscal adjustment will be highly relevant for several countries, especially those in the euro area that, in the context of the new European governance, will follow a path of public debt reduction in the years ahead.\" \u003cbr\u003e —Carlo Azeglio Ciampi, Emeritus President of the Italian Republic (President, 1999–2006; Finance Minister, 1996–1999)  \u003cp\u003e\"Unfortunately, out of necessity, the issues of debt and deficit dominate the national debate in too many countries. The experience of others can often provide a guide to solutions—what to do and what not to do. In this context, this book will prove invaluable.\"\u003cbr\u003e —The Right Honorable Paul Martin, former Finance Minister (1993–2002) and Prime Minister (2003–2006) of Canada\u003c\/p\u003e \u003cp\u003e\"Budget consolidation may well be the defining macroeconomic issue for the industrialized world over the next decade. The budget debate is as unbalanced as the budget. Ideology and rhetoric dominate in places where evidence and logic should dominate. This important book balances the debate by providing careful and analytic evidence on all the important tradeoffs. It is a must-read for everyone concerned about our fiscal future.\"\u003cbr\u003e —Lawrence H. Summers, University Professor at Harvard University; former Director, National Economic Council (2009–2011); Secretary of the U.S. Treasury (1999–2001)\u003c\/p\u003e \u003cp\u003e\"Reducing public debt will be the main policy issue for the next decade. This volume greatly helps us understand how to do it in a way that achieves the intended objectives despite unexpected events that will inevitably occur. We don't know as much as we should about fiscal policy: this volume improves our understanding with a careful analysis of many international examples of fiscal adjustment. A great read.\"\u003cbr\u003e —Alberto Alesina, Professor of Political Economy, Harvard University\u003c\/p\u003e \u003cp\u003e\"How should countries around the world deal with their burgeoning levels of national debt? This timely book's detailed case studies illustrate that though failure is common, there is also more than one path to success and a number of key principles that can serve as a guide to navigation.\"\u003cbr\u003e —Alan J. Auerbach, Professor of Economics and Law, Director of the Burch Center for Tax Policy and Public Finance, University of California, Berkeley\u003c\/p\u003e \u003cp\u003e\"There are few questions more important in the U.S. and Europe today than how public debt will be brought under control. \u003ci\u003eChipping Away at Public\u003c\/i\u003e Debt reviews a wealth of experience with large-scale fiscal adjustment plans in advanced economies, drawing on country studies as well as statistical analysis. The authors reach useful and sometimes unexpected conclusions. In particular, economic factors such as 'growth surprises' are perhaps even more important than political factors in determining success.\"\u003cbr\u003e —Dani Rodrik, Professor of International Political Economy, John F. Kennedy School of Government, Harvard University\u003c\/p\u003e \u003cb\u003ePAOLO MAURO\u003c\/b\u003e is a Division Chief in the IMF's Fiscal Affairs Department. He has published several articles in top economics journals and is coauthor of \u003ci\u003eEmerging Markets and Financial Globalization: Sovereign Bond Spreads in 1870–1913 and Today\u003c\/i\u003e. The IMF is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Its Fiscal Affairs Department provides policy and technical advice on public finance issues to member countries.  \u003cb\u003eChipping Away at Public Debt\u003c\/b\u003e  \u003cp\u003eThe global financial and economic crisis that began in the late 2000s caused the public finances in the world's most advanced economies to experience their most profound worsening since World War II. Government debts as a share of gross domestic product in the G7 countries—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—are now higher than in the early 1950s. Spending pressures in the aging-related areas of pensions and, especially, health care will add to the challenge in the years ahead.\u003c\/p\u003e \u003cp\u003eWritten and researched by experts at the International Monetary Fund (IMF), \u003ci\u003eChipping Away at Public Debt\u003c\/i\u003e looks at fiscal adjustment plans in advanced economies, comparing the planned or projected reductions in debts and deficits to the actual outcomes. It also looks at whether spending exceeded, or revenues fell short, of expectations, and why, and whether planned debt reductions proceeded faster or slower than projected. The concluding chapter summarizes lessons learned and provides suggestions for attaining successful fiscal adjustments.\u003c\/p\u003e \u003cp\u003eBeginning with a Foreword by Carlo Cottarelli, Director of the IMF's Fiscal Affairs Department, \u003ci\u003eChipping Away at Public Debt\u003c\/i\u003e looks at:\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eSuccessful adjustment founded upon reforms in Canada (by C. Sancak, L. Q. Liu, and T. Nakata)\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eThe quest for fiscal discipline in the United States (by J. Jonas)\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eVirtue and fortune in France's fiscal consolidation (by E. Martin, I. Tytell, and I. Yakadina)\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eLessons from past experience in Germany (by C. Breuer, J. Gottschalk, and A. Ivanova)\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eFour chancellors facing challenges in the United Kingdom (by T. Ahnert, R. Hughes, and K. Takahashi)\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eItaly's medium-term fiscal planning under frequent government changes (by F. Balassone, S. Momigliano, and P. Rizza)\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eJapan's fiscal adjustment plans and macroeconomic shocks (by K. Takahashi and K. Tokuoka)\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eA statistical analysis of performance in the European Union (by S.A. Abbas, F. Hasanov, P. Mauro, and J. Park)\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWith fiscal crises having recently begun to affect some advanced economies, there is now a greater realization that the need for fiscal adjustment in the years ahead is at its highest and will no doubt remain a key issue for a long time to come. Required reading whether you are an investor or economist, \u003ci\u003eChipping Away at Public Debt\u003c\/i\u003e changes the way we look at large fiscal adjustments, by shifting the focus of empirical analysis to large fiscal adjustment plans, as well as through comparison of plans versus outcomes.\u003c\/p\u003e  \u003cp\u003ePraise for Chipping Away at Public Debt\u003c\/p\u003e \u003cp\u003e\"This analytical cross-country study of fiscal adjustment will be highly relevant for several countries, especially those in the euro area that, in the context of the new European governance, will follow a path of public debt reduction in the years ahead.\" —Carlo Azeglio Ciampi, Emeritus President of the Italian Republic (President, 1999–2006; Finance Minister, 1996–1999)\u003c\/p\u003e \u003cp\u003e\"Unfortunately, out of necessity, the issues of debt and deficit dominate the national debate in too many countries. The experience of others can often provide a guide to solutions—what to do and what not to do. In this context, this book will prove invaluable.\" —The Right Honorable Paul Martin, former Finance Minister (1993–2002) and Prime Minister (2003–2006) of Canada\u003c\/p\u003e \u003cp\u003e\"Budget consolidation may well be the defining macroeconomic issue for the industrialized world over the next decade. The budget debate is as unbalanced as the budget. Ideology and rhetoric dominate in places where evidence and logic should dominate. This important book balances the debate by providing careful and analytic evidence on all the important tradeoffs. It is a must-read for everyone concerned about our fiscal future.\" —Lawrence H. Summers, University Professor at Harvard University; former Director, National Economic Council (2009–2011); Secretary of the U.S. Treasury (1999–2001)\u003c\/p\u003e \u003cp\u003e\"Reducing public debt will be the main policy issue for the next decade. This volume greatly helps us understand how to do it in a way that achieves the intended objectives despite unexpected events that will inevitably occur. We don't know as much as we should about fiscal policy: this volume improves our understanding with a careful analysis of many international examples of fiscal adjustment. A great read.\" —Alberto Alesina, Professor of Political Economy, Harvard University\u003c\/p\u003e \u003cp\u003e\"How should countries around the world deal with their burgeoning levels of national debt? This timely book's detailed case studies illustrate that though failure is common, there is also more than one path to success and a number of key principles that can serve as a guide to navigation.\"—Alan J. Auerbach, Professor of Economics and Law, Director of the Burch Center for Tax Policy and Public Finance, University of California, Berkeley\u003c\/p\u003e \u003cp\u003e\"There are few questions more important in the U.S. and Europe today than how public debt will be brought under control. Chipping Away at Public Debt reviews a wealth of experience with large-scale fiscal adjustment plans in advanced economies, drawing on country studies as well as statistical analysis. The authors reach useful and sometimes unexpected conclusions. In particular, economic factors such as 'growth surprises' are perhaps even more important than political factors in determining success.\" —Dani Rodrik, Professor of International Political Economy, John F. Kennedy School of Government, Harvard University\u003c\/p\u003e  ","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988917141733,"sku":"NP9781118043387","price":45.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118043387.jpg?v=1761782042","url":"https:\/\/k12savings.com\/es\/products\/chipping-away-at-public-debt-isbn-9781118043387","provider":"K12savings","version":"1.0","type":"link"}