Public Debt Policy: Credibility and Institutions

The paper considers modern frameworks of public debt management from a credibility perspective. It focuses on the institutional and operational arrangements of effective debt management. In particular, the author seeks to shed light upon the contemporary problems of Czech debt manager compared with OECD and EU debt managers. The author calls for a broader public debate of public debt management in the Czech Republic, citing the country?s increasing level of public debt and accession to the EU and EMU. The author suggests establishing a public debt-management office within the organizational structure of the Czech Ministry of Finance. It would functionally operate independent of both the ministry and the central bank. This is a crucial condition toward strengthening the credibility of Czech debt management and economic policy, the author concludes.