Globalization and High Public Debt : The Impact of Financial Interdependence

Globalization has deeply transformed the world economy: rule of law gained ground, especially in Eastern Europe and Latin America, poverty fell significantly, particularly in Asia, and capitalism triumphed, sometimes with massive state intervention.In the meantime, financial interdependence grew dramatically.The core argument of this book is that the high degree of financial interdependence forged during the “golden age” of globalization from 1991-2016 is now the main impediment to the reduction of the elevated public debts observed in many countries.Therefore, it investigates how the world economy may be deleveraged and how interdependence may be reduced or, wherever possible, made compatible with a deleveraging process. Readers of this book will gain a comprehensive understanding of the multifaceted challenges stemming from high public debt burdens.Drawing on insights from economics, law, and political science, it argues that public debts may be reaching unsustainable levels in advan