This analysis of the political economy of government debt is divided into two parts. The first part deals with theoretical issues. Topics covered include: behavioural aspects, long term debt strategy, the political economy of redistribution, a model of intergenerational redistribution, the relationship between social security and the deficit in the US, the consequences of endogenous technology, and budgetary and monetary issues related to European integration. The second part of the volume concerns empirical applications, including the empirical relevance of the notion of debt neutrality, the management of the nominal government debt, the global linkages between interest rates and public debt, functional finance, some positive theories of government debt, and suggestions for fiscal indicators.