Management of the Nominal Public Debt Theory and Applications
IMF Working Papers, December 1, 1990
Source details
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- Management of the Nominal Public Debt Theory and Applications
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Bibliographic details
- Authors: Pablo Emilio Guidotti, Guillermo Calvo
- Published: December 1, 1990
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451942798.001
Summary
- Optimal management of the public debt is explored in a context where economic policy is continuously revised because, when the public debt is non—indexed, policy—makers are tempted to use inflation in order to reduce the real value of the public debt.
- The model’s implications are explored following two approaches:
- The effects of various exogenous disturbances are examined by means of numerical simulations.
- The analysis explores—for Italy, Ireland, and the United States—if the model’s implications concerning the maturity structure of government debt are consistent with actual experience.
Approaches and Methods
- Numerical simulations to examine effects of various exogenous disturbances.
- Cross-country empirical comparison for Italy, Ireland, and the United States to assess consistency of model implications with actual maturity structure of government debt.
Subjects and Keywords
- Subject: Expenditure, Government debt management, Inflation, Prices, Public debt, Public financial management (PFM), Revenue administration, Tax arrears management
- Keywords: debt aversion, debt level, debt maturity, debt policy, debt repayment, Government debt management, government debt obligation, Inflation, inflation rate, maturity composition, maturity structure, Tax arrears management, WP