Public Spending and the Role of the State: History, Performance, Risk and Remedies"Public expenditure is an essential tool for governments to underpin prosperity, opportunities and freedom in our advanced countries. But discontent is spreading at a time when high spending, debt and new challenges risk overwhelming many governments. This book's four themes are, therefore, as relevant today as they are timeless: 1) The role of the state has grown enormously over the past 150 years, initially setting sound rules of the game and providing essential public goods and services. In recent decades, however, public spending has often grown more than needed and lost focus, while public debt has reached record levels. 2) There are huge differences in the 'value for money' citizens get from their governments. Public spending of 30%-35% of GDP, or perhaps 40%, suffices to do well, which is much less than the prevailing 45%-55% in many countries. 3) There are dark clouds on the horizon from risks in the social and financial sphere. If social spending trends continue, or if a new financial crisis strikes, public finances will not be sustainable in many countries. 4) Governments need to reform their expenditure and strengthen their rules and institutions to deliver better on their core tasks. This way, they will stay lean, efficient and sustainable"-- |
Contents
What Should Governments Do? | 1 |
Government Performance and Efficiency | 81 |
Reforming Public Expenditure | 104 |
The Optimal Size of Government | 132 |
Social Expenditure and the Risk of Social Dominance | 155 |
Interest Rate Asset Markets | 179 |
Bank Shadow Bank Central Bank | 204 |
Rules and Institutions | 235 |
Conclusions and Epilogue | 257 |
| 271 | |
| 281 | |
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Public Spending and the Role of the State: History, Performance, Risk and ... Ludger Schuknecht No preview available - 2020 |
Common terms and phrases
administration advanced countries advanced economies Australia asset price Austria Belgium boom Canada capital central bank Chapter core tasks crises debt ratios decades decline deficits and debt effects Euro area Euro area Austria European countries expenditure reform Figure financial sector Finland fiscal costs fiscal risks fiscal rules France GDP on average Germany Gini coefficient global financial crisis government debt government performance government spending Greece growth higher income distribution increase indicators interest rates Ireland Italy Japan market economy ment Netherlands Nordics number of countries OECD pension policies Portugal potential primary expenditure private sector programmes public debt public finances public investment public spending reported rise role of government rules and institutions safety nets score shadow banking significant significantly Singapore social expenditure social spending Source South Korea Spain spending ratio stabilisers stability Sweden Switzerland Table Tanzi and Schuknecht taxes trillion trust United Kingdom Zealand