In the Red: The Politics of Public Debt Accumulation in Developed Countries

by Zsofia Barta

Overview

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.

Product Details

ISBN-13:	9780472130641
Publisher:	University of Michigan Press
Publication date:	03/06/2018
Pages:	224
Product dimensions:	6.00(w) x 9.00(h) x 0.90(d)

About the Author

Zsófia Barta is Assistant Professor of Political Science at the University at Albany SUNY.

Table of Contents

List of Illustrations ix

List of Abbreviations xi

Acknowledgments xiii

1 The Puzzle of Relentlessly and Alarmingly Growing Debt 1

2 Fiscal Polarization, International Exposure, and Sustained Debt Accumulation 30

3 Evolving Social Coalitions, Intense Polarization, and Moderate Exposure: Italy 60

4 Fiscal Discord and Accord in Open Economies: Belgium versus Ireland 85

5 Fiscal Discord in Closed Economies: Greece and Japan 113

6 Variations on Three Themes: Social Coalitions, Fiscal Polarization, and International Exposure 150

Notes 179

References 189

Index 200

Editorial Reviews

Honorable Mention: International Studies Association (ISA) 2019 International Political Economy Best Book Award

ISA IPE Best Book Award

This book is timely. It’s one of those books that when you read it, you think, ‘I can’t believe someone hasn’t done this before.’ But in fact, no one has. . . . Its topic is intellectually challenging and substantively important.”
—Pepper Culpepper, University of Oxford

“In the Red will convince other scholars that fiscal polarization and international exposure are important factors to incorporate in any systematic attempt to understand processes of fiscal adjustment.” 
—Deborah Mabbett, Birbeck, University of London

From the Publisher

Winner: American Political Science Association (APSA) 2018 European Politics and Society Section Book Award

APSA European Politics and Society Section Book Award

Honorable Mention: Society for the Advancement of Socio-Economics (SASE) 2020 Alice Amsden Best Book Award

SASE Alice Amsden Best Book Award