Management of the Nominal Public Debt Theory and Applications
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. First, the effects of various exogenous disturbances are examined by means of numerical simulations. Secondly, 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.
Series:
Working Paper No. 1990/115
Subject:
Expenditure Government debt management Inflation Prices Public debt Public financial management (PFM) Revenue administration Tax arrears management
English
Publication Date:
December 1, 1990
ISBN/ISSN:
9781451942798/1018-5941
Stock No:
WPIEA1151990
Pages:
42
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