Ensayos Económicos N°79- Mayo 2022

In Defense of Public Debt

Barry Eichengreen
University of California, United States


I offer a balanced view of the benefits and risks of public debt issuance. The role of public debt in mobilizing resources to meet national emergencies is a historical constant, most recently illustrated by the response to the COVID-19 pandemic. But this emergency response also leaves a legacy. I reflect on the prospects for debt consolidation and on how governments should meet the challenge of managing public debt now as we enter a period of higher global interest rates. (This article is based on the presentation made by the author at the 2021 Monetary and Banking Conference of the Central Bank of Argentina).

Palabras Clave: economic history, public debt, sovereign debt

Códigos JEL: N1, G1

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Fecha de publicación: 27/05/2022

Cómo citar este trabajo: Eichengreen, B. (2022); "In Defense of Public Debt", Ensayos Económicos, N°79, Mayo, pp. 111-118.