Public Debt Accounting and Management in UK: Refunding or Refinancing? Or, the Strange Case of Doctor Jekyll and Mr Hyde in the aftermath of the Global Financial Crisis

12th World Congress of the International Association for Accounting Education and Research (IAAER), November 13-15, 2014 - Firenze, Italy

Accounting Forum, 2016. DOI: 10.1016/j.accfor.2016.02.003

25 Pages Posted: 20 Mar 2014 Last revised: 28 May 2016

See all articles by Yuri Biondi

Yuri Biondi

French National Center for Scientific Research (CNRS)

Date Written: March 10, 2016

Abstract

Since the 1990s at least, UK HM Treasury has been leading a general transformation of public service and the relationship between public and private sectors, driven by a distinctive preference for the private sector. This preference has led to transplant the IFRS to provide a balance sheet accounting representation of public administration, while favouring the recourse to private actors for financing, delivering and even auditing the public service. However, in the aftermath of the Global Financial Crisis, since 2007-8, the joint action of the HM treasury and the Bank of England has been running exceptional policies that belong to and activate the very financial-economic core which constitutes the specific economy of public administration: (i) its use of public borrowing for redistributive purposes; and (ii) its public debt management based upon issuance and progressive refinancing over time. Our analysis provides clear-cut evidence of these policies and their material impact on public debt management. This tells the strange case of Doctor Jekyll who advocates the imitation of private sector by the public administration, while Mister Hyde does actually foster public policies based upon the specific economic working of public administration, which makes it and its public debt different from private entities and their corporate securities.

Keywords: public debt management, governmental accounting, global financial crisis, financialization

JEL Classification: H11, H60, H61, H62, H63, H70, H71, H74, H77, H83, M41, M48

Suggested Citation

Biondi, Yuri, Public Debt Accounting and Management in UK: Refunding or Refinancing? Or, the Strange Case of Doctor Jekyll and Mr Hyde in the aftermath of the Global Financial Crisis (March 10, 2016). 12th World Congress of the International Association for Accounting Education and Research (IAAER), November 13-15, 2014 - Firenze, Italy. Available at SSRN: https://ssrn.com/abstract=2411048 or http://dx.doi.org/10.2139/ssrn.2411048

Yuri Biondi (Contact Author)

French National Center for Scientific Research (CNRS) ( email )

IRISSO - University Paris Dauphine PSL
Place Marechal Lattre Tassigny
75016 Paris
France

HOME PAGE: http://yuri.biondi.free.fr/

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