In The Red

Why do rich countries flirt with fiscal disaster? Between the 1970s and the 2000s, during times of peace and prosperity, affluent countries—like Belgium, Greece, Italy, and Japan—accumulated so much debt that they became vulnerable and exposed themselves to the risk of default. In the past three dec...

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Main Author: Barta, Zsófia
Format: Online
Language:English
Published: University of Michigan Press 2021
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Online Access:645364
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author Barta, Zsófia
author_browse Barta, Zsófia
author_facet Barta, Zsófia
author_sort Barta, Zsófia
collection Directory of Open Access Books
description Why do rich countries flirt with fiscal disaster? Between the 1970s and the 2000s, during times of peace and prosperity, affluent countries—like Belgium, Greece, Italy, and Japan—accumulated so much debt that they became vulnerable and exposed themselves to the risk of default. In the past three decades, an extensive scholarly consensus emerged that these problems were created by fiscal indiscipline, the lack of sufficient concern for budgetary constraints from policy makers as they try to please voters. This approach formed the foundation for the fiscal surveillance system that attempted to bring borrowing in European countries under control via a set of fiscal rules. In the Red demonstrates that the problem of sustained, large-scale debt accumulation is an adjustment issue rather than a governance failure. Irrespective of whether the original impetus for borrowing arose from exogenous changes or irresponsible decision making, policy makers invariably initiate spending cuts and/or tax increases when debt grows at an alarming rate for several years in a row. Zsófia Barta argues that explaining why some countries accumulate substantial amounts of debt for decades hinges on understanding the conditions required to allow policy makers to successfully put into place painful adjustment measures.
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spelling doab-20.500.12854ir-340632025-07-31T02:31:01Z In The Red Barta, Zsófia Political Science Belgium Fiscal policy Greece Gross domestic product Ireland Italy Japan Social security Why do rich countries flirt with fiscal disaster? Between the 1970s and the 2000s, during times of peace and prosperity, affluent countries—like Belgium, Greece, Italy, and Japan—accumulated so much debt that they became vulnerable and exposed themselves to the risk of default. In the past three decades, an extensive scholarly consensus emerged that these problems were created by fiscal indiscipline, the lack of sufficient concern for budgetary constraints from policy makers as they try to please voters. This approach formed the foundation for the fiscal surveillance system that attempted to bring borrowing in European countries under control via a set of fiscal rules. In the Red demonstrates that the problem of sustained, large-scale debt accumulation is an adjustment issue rather than a governance failure. Irrespective of whether the original impetus for borrowing arose from exogenous changes or irresponsible decision making, policy makers invariably initiate spending cuts and/or tax increases when debt grows at an alarming rate for several years in a row. Zsófia Barta argues that explaining why some countries accumulate substantial amounts of debt for decades hinges on understanding the conditions required to allow policy makers to successfully put into place painful adjustment measures. 2021-02-10T12:58:18Z 2018-02-01 23:55:55 2020-03-12 03:00:32 2020-04-01T13:00:49Z 2018-02-01 book 645364 OCN: 1013477427 http://library.oapen.org/handle/20.500.12657/30544 9780472900923 https://directory.doabooks.org/handle/20.500.12854/34063 eng open access image/jpeg image/jpeg image/jpeg image/jpeg image/jpeg image/jpeg n/a n/a n/a n/a n/a n/a https://library.oapen.org/bitstream/20.500.12657/30544/1/645364.pdf https://library.oapen.org/bitstream/20.500.12657/30544/1/645364.pdf https://library.oapen.org/bitstream/20.500.12657/30544/1/645364.pdf https://library.oapen.org/bitstream/20.500.12657/30544/1/645364.pdf https://library.oapen.org/bitstream/20.500.12657/30544/1/645364.pdf https://library.oapen.org/bitstream/20.500.12657/30544/1/645364.pdf University of Michigan Press 10.3998/mpub.9726915 10.3998/mpub.9726915 b7359529-e5f7-4510-a59f-d7dafa1d4d17 Knowledge Unlatched b818ba9d-2dd9-4fd7-a364-7f305aef7ee9 9780472900923 Knowledge Unlatched (KU) KU Select 2017: Front list Collection Ann Arbor 100858 KU Select 2017: Front list Collection open access
spellingShingle Political Science
Belgium
Fiscal policy
Greece
Gross domestic product
Ireland
Italy
Japan
Social security
Barta, Zsófia
In The Red
title In The Red
title_full In The Red
title_fullStr In The Red
title_full_unstemmed In The Red
title_short In The Red
title_sort in the red
topic Political Science
Belgium
Fiscal policy
Greece
Gross domestic product
Ireland
Italy
Japan
Social security
topic_facet Political Science
Belgium
Fiscal policy
Greece
Gross domestic product
Ireland
Italy
Japan
Social security
url 645364
work_keys_str_mv AT bartazsofia inthered