Managing the Public Debt in Fiscal Stabilizations: The Evidence / Alessandro Missale, Francesco Giavazzi, Pierpaolo Benigno.

Format:

Book

Author/Creator:

Missale, Alessandro.

Contributor:

National Bureau of Economic Research.

Giavazzi, Francesco.

Benigno, Pierpaolo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6311.

NBER working paper series no. w6311

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Managing the Public Debt in Fiscal Stabilizations

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Summary:

This paper provides evidence on the behavior of public debt managers during fiscal" stabilizations in OECD countries over the last two decades. We find that debt maturity tends to" lengthen the more credible the program, the lower the long-term interest rate and the higher the" volatility of short-term interest rates. We show that this debt issuing strategy is consistent with" optimal debt management if information between the government and private investors is" asymmetric, as is usually the case at the outset of a stabilization attempt when private investors" may lack full confidence in the announced budget cuts.

Notes:

Print version record

December 1997.