Public debt management 2400-ZEWW997
1. An overview of fundamental concepts related to public debt and the factors that influence its dynamics.
2. Consequences of Public Debt for the Economy.
3. Cost of Servicing Public Debt. Key determinants, including debt management instruments, investor behavior, and communication strategies.
4. Debt of Local Governments. The unique characteristics and challenges of local government borrowing.
5. Assessment of the Financial Condition of Local Governments.
6. Fiscal Rules. The rationale behind their implementation and the limitations they present. A discussion on the specific aspects of fiscal rules at both the central and local levels.
Type of course
Course coordinators
Learning outcomes
After completing the seminar, the student understands the factors that influence the cost of servicing public debt, the primary instruments used to manage it, and the various risks associated with public debt. The student is familiar with the specifics of local government debt and the principles involved in evaluating the financial standing of local governments. They also have knowledge of the methods and reasons for limiting both general and local public debt.
The student is capable of discussing public debt dynamics within EU countries and possesses the skills necessary to analyze the risks linked to public debt. They can identify fundamental methods for assessing the creditworthiness of local governments and are able to independently search for and analyze the data required for such assessments.
Furthermore, the student can prepare and present an analysis of specific problems and recognizes the complexities of the consequences associated with public debt.
Assessment criteria
The criteria for passing the course are as follows:
1. Preparation of 2-3 presentations on topics specified by the instructor. The average score from these presentations will account for 50% of the final grade.
2. Completion of 2-3 partial tests. The average score from these tests will also contribute 50% to the final grade.
Additionally, participation in class activities will be recognized and may increase the grade derived from the two main components..
Bibliography
Ministerstwo Finansów, Strategie Zarządzania Długiem Publicznym oraz Raporty roczne nt Długu publicznego
Eyraud, L., Debrun, M. X., Hodge, A., Lledo, V. D., & Pattillo, M. C. A. (2018). Second-generation fiscal rules: balancing simplicity, flexibility, and enforceability. International Monetary Fund.
Debrun, X., Ostry, J. D., Willems, T., & Wyplosz, C. (2019). Debt sustainability. Sovereign debt: A guide for economists and practitioners, 151.
Smith, H. J. M., & Mendoza-Velázquez, A. (2023). Foundations of subnational public debt management: theories, concepts and policy lessons. Research Handbook on Public Financial Management, 273-286.
Bailey S. J. ; Local government economics. Principles and practice; MacMillan; 1999
Fisher R. C.; State and local public finance; IRWIN; 1996
Readings in state & local public finance; ed. by D Netzer; M. Drennan; Blackwell; 1997
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: