The quiet side of debt: public debt management in advanced economies

Buybacks of Domestic Debt in Public Debt Management

In the model a ...scal stabilisation is announced under asymmetry of information between the government and the private investors. The government could be of two types: a dry type and a wet type, according to the amount of spending cuts it decides to make. Private investors may thus lack con...dence in the stabilisation program and interest rates would be too high, re‡ecting this lack of credib...

Guidelines for Public Debt Management

IV. Discussion of the Guidelines .............................................................................................10 1. Debt Management Objectives and Coordination...................................................10 2. Transparency and Accountability ..........................................................................14 3. Institutional Framework.................................

Public debt and economic growth in emerging market economies

This paper studies the relationship between public debt and economic growth for selected emerging markets performing panel data estimations. Several regressor variables are included, but the main focus is on public debt. The results reveal a significant positive correlation between public debt and the subsequent growth rate of per capita GDP. Population and investment also yield a significant p...

Sustainability of Public Debt

Fiscal policy in debt constrained economies

We study optimal fiscal policy in a small open economy (SOE) with sovereign and private default risk. The SOE’s government uses linear taxation to fund exogenous expenditures and uses public debt to inter-temporally allocate tax distortions. We characterize a class of environments in which the tax on labor goes to zero in the long run, while the tax on capital income may be non-zero, reversing ...