| Popis: |
By exploring the link between sovereign debt capacity and financial sustainability in central government , this chapter disentangles financial sustainability mechanisms that are specific to the public sector. These mechanisms point to: (i) public debt management and its refinancing process, which transforms sovereign debt in quasi-money; (ii) the taxing power, and (iii) the assurance of collective obligations and guarantees such as unfunded ‘pay-as-you-go’ pension schemes. In this context, some evergreen issues are raised such as: Can public debt sustainability be examined on the same basis as private debt sustainability? Are sustainability and funding linked? Shall governments fully repay their debt one day? |
