Title What We Owe
Subtitle Truths, Myths, and Lies about Public Debt
Author Carlo Cottarelli
ISBN 9780815730675
List price USD 21.99
Price outside India Available on Request
Original price
Binding Hardbound
No of pages 208
Book size 153 x 229 mm
Publishing year 2017
Original publisher Brookings Institution Press
Published in India by Brookings Institution Press
Exclusive distributors Viva Books Private Limited
Sales territory India, Sri Lanka, Bangladesh, Pakistan, Nepal, .
Status New Arrival
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“Cottarelli, who once headed the Fiscal Affairs Department of the International Monetary Fund, has put together a primer on public debt. He sets out to debunk a number of common misconceptions about government borrowing, especially the idea that unless a government pays off its debts, it is fiscally unsound or is somehow cheating future generations. He draws on extensive scholarly research about debt, much of it carried out by IMF staff, and presents his findings in comprehensible, nontechnical language. [...] This is essential reading for all those concerned about current high levels of public debt—and for those who are not concerned but should be.”

Foreign Affairs

“Public debt is very high. Is this an issue? Should it be reduced? If so, how? Through debt restructuring, inflation, or more slowly, through steady surpluses? Carlo Cottarelli, building on his long experience at the IMF, offers a clear, frank, and refreshing discussion of one of the most important macroeconomic issues of the day. A must-read.”

Olivier Blanchard, emeritus Robert M. Solow Professor of Economics, Massachusetts Institute of Technology, and former economic counselor, International Monetary Fund

“When governments spend now but tax only later, they issue debt. This book, by a distinguished economist and public servant, clearly sets forth the problems that current government officials pass on to those in the future when they add to government debt, and the alternatives available for coping with those problems, all of them unpleasant. The book is remarkable for the clear and logical way it delineates the constraints and choices that big government debts impose on future governments and citizens. The book is nonpartisan in describing in clear terms the available alternatives and their consequences.”

Thomas Sargent, Nobel Prize winner in economics, 2011

“A book for all of us as parents, as well as for our children, to better understand what will affect the future and how the future will be affected by our decisions today. An essential read not only to understand but also to decide in a fair and farsighted way, thus avoiding the mistakes of the past.”

Enrico Letta, former Prime Minister of Italy


The euro crisis, Japan’s sluggish economy, and partisan disagreements in the United States about the role of government all have at least one thing in common: worries about high levels of public debt. Nearly everyone agrees that public debt in many advanced economies is too high to be sustainable and must be addressed. There is little agreement, however, about when and how that addressing should be done—or even, in many cases, just how serious the debt problem is.

As the former director of the International Monetary Fund’s Fiscal Affairs Department, Carlo Cottarelli has helped countries across the globe confront their public finance woes. He also had direct experience in advising his own country, Italy, about its chronic fiscal ailments. In this straightforward, plain-language book, Cottarelli explains how and why excessive public debt can harm economic growth and can lead to crises such as those experienced recently in Italy and several other European countries.

But Cottarelli also has some good news: reducing public debt often can be done without trauma and through moderate changes in spending habits that contribute to economic growth. His book focuses on positive remedies that countries can adopt to deal with their public debt, analyzing both the benefits and potential downsides to each approach, as well as suggesting which remedies might be preferable in particular situations.

Too often, public debate about public debt is burdened by lies and myths. This book not only explains the basic facts about public debt but also aims to bring truth and reasoned nonpartisan analysis to the debate.




PART I: The Public Debt Problem

Chapter 1: What Is Public Debt?

Chapter 2: The Surge in Public Debt

Chapter 3: How High Public Debt Can Cause a Financial Crisis

Chapter 4: How High Public Debt Can Reduce Economic Growth

Chapter 5: Public Debt, Moral Imperatives, and Politics

Chapter 6: A Pause to Recap

PART II: The Shortcuts

Chapter 7: Printing Money

Chapter 8: First Case Study: Should European Countries Leave the Euro Zone?

Chapter 9: Financial Repression

Chapter 10: Default

Chapter 11: Second Case Study: The Greek Crisis

Chapter 12: Debt Mutualization

Chapter 13: Privatization

PART III: The Main Road

Chapter 14: Economic Growth

Chapter 15: A Bit of Austerity

Chapter 16: Institutional Fiscal Constraints

Conclusion: The Unbearable Lightness of Public Debt



About the Author:

Carlo Cottarelli is the Executive Director for Italy at the International Monetary Fund. He was Commissioner of public spending reform in Italy and director of the International Monetary Fund’s Fiscal Affairs Department. At the IMF, he worked on surveillance and technical assistance in a variety of countries, including Albania, Croatia, Hungary, Lebanon, Russia, Serbia, Tajikistan, Turkey, Italy, and the United Kingdom. He has authored several papers on fiscal and monetary policies and institutions, and edited books on inflation, monetary policy, and exchange rates.

Target Audience:

People interested in economic policy, public administration and development.


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