Examining the causes and consequences of the financial crash, this book looks at the effects of fiscal stimulus packages and suggests that, while they may lead to an immediate positive impact on growth, the effect will quickly wear off and the effect of the so-called stimulus packages will then be negative. These are important observations given the pressure that Western governments are under to increase government borrowing in the face of slowing growth rates. Author Robert Barro then discusses what he believes will be the next crisis—a crisis of government indebtedness. This publication is based on a lecture given in July 2011 and such a crisis has, indeed, unfolded. However, Barro expects that this crisis will not be confined to the Eurozone. For example, U.S. states are failing to deal with the problems of both explicit debt and future pensions and social insurance obligations. Barro concludes with suggestions as to how governments should deal with these growing problems.