This handbook brings together cutting-edge academic research and expert policy analysis across fiscal, monetary, structural, and environmental domains. Public debt continues to rise at an unprecedented pace. According to OECD projections, sovereign bond issuance among advanced economies is expected to reach USD 17 trillion by the end of 2025, up from USD 14 trillion in 2024. In emerging and developing economies, issuance has surged from USD 1 trillion in 2023 to USD 3 trillion in 2024a threefold increase, underscoring the growing fiscal burden.It explores strategies for stabilizing public debt ratios and enhancing the efficiency of public expenditure, while addressing inflationary pressures and promoting sustainable, environmentally conscious growth. Structured in nine parts and comprising 36 chapters with 75 contributorsincluding many of the fields most prominent scholars and practitionersthis comprehensive handbook examines public debt dynamics both within and beyond the framework of fiscal dominance. It will be an indispensable resource for academics, researchers, and students in public finance, as well as central bankers and policymakers engaged in shaping the future of fiscal and monetary governance.
Introductions.- Prologue: An Overview of the Global Public Debt
Landscape.- General Introduction: Public Debt, Inflation Surge & Policy Mix :
Where Do We Stand?.- Part I: Public Spending and Public Debt : A Vicious
Circle ?.- Introduction : The Macroeconomics of Public Debt, What Are The
Challenges Ahead ?.
Chapter 1: Public Debts Are Necessary : A Keynesian
Rationale.
Chapter 2: Public Spending during Great Moderation and Fiscal
Dominance : History, Global Landscape and Policy Issues.
Chapter 3: Public
Debt Resume by Spending Cuts, Austerity Versus Fiscal Expansion.
Chapter 4:
Debt, Is It Good or Bad? A Sociological View.
Chapter 5: Regional and
Municipal Public Debt : A European Perspective.- Part II: Debt Management and
Debt Issues Techniques .- Introduction : Public Debt & Public Deficits :
Stocks, Flows and Measures.
Chapter 6: Debt Sustainability Analysis
Frameworks: The IMF Versus the European Commission.
Chapter 7: Are Financial
Markets At The Root of Public Over-Indebtness ?.
Chapter 8: Sovereign Debt
Rating : An Overview.- Part III: Monetary Policy During Great Moderation.-
Introduction : Overview of the Evolution of Some Key Factors in Monetary
Policy from the 1980s through the 2020s.
Chapter 9 : The Neutral Rate(s) of
Interest, Linchpin Between Monetary and Fiscal Policies.
Chapter 10 : The
Transmission Channels of Monetary Policy during Quantitative Easing : What To
Retain ? Selected Countries : US, UK, ECB, BoJ, New Zealand.
Chapter 11 :
The Modern Monetary Theory : An Assessment.
Chapter 12: Fiscal Policy and
Inflation : What To Retain From Great Moderation To Fiscal Dominance ?.- Part
IV: The Effective Interest Rate Lower Bound and Inflation Issues.-
Introduction : The Effective Lower Bound On Nominal Interest Rate and Low
Inflation : How Should Central Banks Have Reacted (2019-2022)?.- Chapter 13:
Inflation Expectations, Monetary Policy Effectiveness and The Effective Lower
Bound of Interest Rate.- Chapter 14: Quantitative Easing, External Shocks and
Sources of Inflation, To What Extent Inflation Is Money Fueled ?.
Chapter
15: The Evolution of Inflation Targeting From The 1990s To 2020s :
Developments and New Challenges.- Part V: Fiscal and Monetary Coordination,
the Way Forward: Some Thoughts from Policy Makers.- Introduction : Fiscal and
Monetary Policies : What Is The New Perimeter ?.
Chapter 16:
"Fiscal-Monetary Policy Mix: Challenges Facing EU".
Chapter 17: Fiscal And
Monetary Coordination, The Way Forward.
Chapter 18: Macroeconomic
Stabilization and the Monetary-Fiscal Policy Mix: Evidence from the
Democratic Republic of Congo.- Part VI: Greening Economic Policies.-
Introduction : Climate Change, Radical Uncertainty and The Greening of
Economic Policies.
Chapter 19: What Policy Mix For The Ecological
Transition?.
Chapter 20: Stock-Flow Consistent Models and Policy Mix For
Decarbonization.
Chapter 21: Sustainable Finance, Sovereign, Blue and Green
Bonds : A Market-based Approach.
Chapter 22: Environment, Social &
Governance (ESG) Factors Applied To Sovereign Bonds Ratings.
Chapter 23:
Environmental Sustainability, Macroeconomic Stabilization and Climate Finance
: The Lessons To Be Learned.- PART VII : Emerging Countries Debt & Policy Mix
Issues.- Introduction : The Debt Problem Is More Global Than Ever Believed.-
Chapter 24: Fiscal and Monetary Policy in Emerging Market Economies : Room
for Coordination ?.
Chapter 25: Sovereign Debt Challenges in Emerging Asian
Economies: Where Do We Stand and What Can Be Done?.
Chapter 26: Public Debt
Issues in a Low Distress Risk Asian Country: The Case of Vietnam.- Chapter
27: The Debt Problem In The Middle Income Countries of The MENA Region : The
Case of Egypt, Morocco Tunisia.- Part VIII: The Debt Problem and Policy
Issues in Low Income Countries.- Introduction : Debt and Poverty, How To
Avoid The 1980-1990s Trap ?.
Chapter 28: Risk of Overindebtness in Africa
and Growing Default Risks in Low Income Countries.
Chapter 29: Policy Mix
Coordination and Productivity in EMCCA: Evidence from a Spatial-Dynamic Panel
Approach.
Chapter 30: Public Debt and Policy Mix Issues in The CEMAC Zone :
The Architecture Design For A Better Fiscal-Monetary Coordination.
Chapter
31: Hidden Public Debt Or Risk of Debt Overhang in Subsaharan Africa: The
Case of Senegal (2018-2024).- Part IX: Public Debt, Radical UncertaintY and
the Theory of Decision.- Introduction : Decision Under Radical Uncertainty,
What To Do When We Do Not Know ?.
Chapter 32: Public Spending, Public
Finance and Behavioral Economics: New Fiscal Psychology at a Glance.
Chapter
33: Public Debt Analysis : From Standard Macroeconomics To Conviction
Narrative Theory & Cognitive Economics.
Chapter 34: The Theory of Decision
under Radical Uncertainty.
Chapter 35: Mathematics and Radical Uncertainty
in Finance A Conceptual Overview.
Chapter 36: Radical Uncertainty,
Probability and Econometrics.- General Conclusion: The Stabilization Policy
Journey Seventeen Years After the Global Financial Crisis.
Chicot Eboue, full professor at Lorraine University in Nancy, France since 1996, is a macroeconomist specializing in macroeconomics, monetary economics, international finance, and development finance. He holds a PhD in Economics and International Finance (1986) and an HDR in Economics (1991) from the University of Bordeaux 1, France. A two-time laureate (1992, 1996) of the French External Aggregation Competition for the recruitment of tenured professors of economics, he is the author of five books, including: Tutorial Lectures in Macroeconomics (Ellipses Editions, Paris, 2025); Finance, Banking and Microfinance: Where Does the Wealth Created Go? (Larcier Editions, Brussels, 2021); Africa: Commodity, Resource Curse & Export Dependence (Lit Verlag, Berlin, 2007); and The Contemporary Economic and Financial Reflection of Central Banks (BCEAO Editions, Dakar, 2005). His research also focuses on the structural diversification of low-income economies, the coordination of external resources, and innovative financing mechanisms. He serves as a consultant to several central banks and governments of developing countries.
