Greco-Roman Lessons for Public Debt Management and Debt Market Development
Greece and Italy initiated efforts to improve public debt management and develop their domestic debt markets respectively in the late 1970s and mid-1980s. At that time, both countries suffered from large and rapidly growing public debt, excessive r...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5175068/greco-roman-lessons-public-debt-management-debt-market-development http://hdl.handle.net/10986/14295 |
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okr-10986-14295 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTABILITY ADMINISTRATIVE COSTS ARBITRAGE ASSET MANAGEMENT BALANCE SHEET BANK CREDIT BANK DEPOSITS BANK LIQUIDITY BANK OF GREECE BANK PORTFOLIOS BANKING INSTITUTIONS BANKING SYSTEM BENCHMARK BENCHMARKS BOND MARKETS BONDS BORROWING BUDGET DEFICITS CAPITAL FLOWS CAPITAL MARKETS CENTRAL BANK CERTIFICATES COMMERCIAL BANKS COUPONS CREDIT CEILINGS CREDIT INSTITUTIONS CURRENCY CURRENCY RISK DEALERS DEBT DEBT INSTRUMENTS DEBT MANAGEMENT DEBT MARKETS DEBT SECURITIES DEMATERIALIZATION DEVALUATION DOMESTIC DEBT ECONOMIC BOOM ECONOMIC EXPANSION ECONOMIC PERFORMANCE EFFICIENT MARKETS ENFORCEMENT POWERS EXPENDITURE EXPENDITURES EXPOSURE FINANCIAL INNOVATION FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL MARKETS FINANCIAL SECTOR FISCAL DEFICITS FOREIGN ASSETS FOREIGN CURRENCY FOREIGN DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUTURES GDP GOVERNMENT DEBT GOVERNMENT SECURITIES HOUSING INCOME INDEXATION INFLATION INFLATION RATES INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INTEREST RATE INTEREST RATES INTERNATIONAL BANKS LIQUIDITY LIQUIDITY MANAGEMENT LOCAL CURRENCY LOCAL GOVERNMENTS MARKET PARTICIPANTS MARKET PRICES MARKETABLE DEBT SECURITIES MATURITIES MATURITY MIDDLE INCOME COUNTRIES MONETARY POLICY MONEY MARKET MORTGAGE BANKS MUTUAL FUND NATIONAL DEBT OTC OUTSTANDING DEBT PENSION FUNDS PENSIONS PRIMARY DEALERS PRODUCTIVITY PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURES PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SPENDING PUBLIC SUBSCRIPTION PUBLIC UTILITIES PUBLIC WORKS PURCHASE PRICE REAL INTEREST RATE REDEMPTION REFINANCING REFINANCING RISK REPAYMENT REPO RESERVE REQUIREMENTS RETAIL INVESTORS RISK MANAGEMENT SAVINGS SECONDARY MARKETS SECURITIES SETTLEMENT SUBSTITUTION SUPERVISORY FRAMEWORK TAX TAX COLLECTION TAXATION TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS URBAN PLANNING VARIABLE RATE BONDS |
| spellingShingle |
ACCOUNTABILITY ADMINISTRATIVE COSTS ARBITRAGE ASSET MANAGEMENT BALANCE SHEET BANK CREDIT BANK DEPOSITS BANK LIQUIDITY BANK OF GREECE BANK PORTFOLIOS BANKING INSTITUTIONS BANKING SYSTEM BENCHMARK BENCHMARKS BOND MARKETS BONDS BORROWING BUDGET DEFICITS CAPITAL FLOWS CAPITAL MARKETS CENTRAL BANK CERTIFICATES COMMERCIAL BANKS COUPONS CREDIT CEILINGS CREDIT INSTITUTIONS CURRENCY CURRENCY RISK DEALERS DEBT DEBT INSTRUMENTS DEBT MANAGEMENT DEBT MARKETS DEBT SECURITIES DEMATERIALIZATION DEVALUATION DOMESTIC DEBT ECONOMIC BOOM ECONOMIC EXPANSION ECONOMIC PERFORMANCE EFFICIENT MARKETS ENFORCEMENT POWERS EXPENDITURE EXPENDITURES EXPOSURE FINANCIAL INNOVATION FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL MARKETS FINANCIAL SECTOR FISCAL DEFICITS FOREIGN ASSETS FOREIGN CURRENCY FOREIGN DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUTURES GDP GOVERNMENT DEBT GOVERNMENT SECURITIES HOUSING INCOME INDEXATION INFLATION INFLATION RATES INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INTEREST RATE INTEREST RATES INTERNATIONAL BANKS LIQUIDITY LIQUIDITY MANAGEMENT LOCAL CURRENCY LOCAL GOVERNMENTS MARKET PARTICIPANTS MARKET PRICES MARKETABLE DEBT SECURITIES MATURITIES MATURITY MIDDLE INCOME COUNTRIES MONETARY POLICY MONEY MARKET MORTGAGE BANKS MUTUAL FUND NATIONAL DEBT OTC OUTSTANDING DEBT PENSION FUNDS PENSIONS PRIMARY DEALERS PRODUCTIVITY PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURES PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SPENDING PUBLIC SUBSCRIPTION PUBLIC UTILITIES PUBLIC WORKS PURCHASE PRICE REAL INTEREST RATE REDEMPTION REFINANCING REFINANCING RISK REPAYMENT REPO RESERVE REQUIREMENTS RETAIL INVESTORS RISK MANAGEMENT SAVINGS SECONDARY MARKETS SECURITIES SETTLEMENT SUBSTITUTION SUPERVISORY FRAMEWORK TAX TAX COLLECTION TAXATION TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS URBAN PLANNING VARIABLE RATE BONDS Campanaro, Alessandra Vittas, Dimitri Greco-Roman Lessons for Public Debt Management and Debt Market Development |
| relation |
Policy Research Working Paper;No.3414 |
| description |
Greece and Italy initiated efforts to
improve public debt management and develop their domestic
debt markets respectively in the late 1970s and mid-1980s.
At that time, both countries suffered from large and rapidly
growing public debt, excessive reliance on short-term bills
held by commercial banks, a strong preference of households
to save in bank deposits, and a weak presence of
institutional investors (pension funds, insurance companies,
and mutual funds). Continuing large fiscal deficits, high
levels of interest rates and inflation, and serious policy
credibility problems impeded the use of long-term
instruments. The authors provide a detailed analysis of the
characteristics of the instruments that were used in these
two countries, their pace of issuance, and their impact on
the composition of public debt. The authors note that the
main Greco-Roman lesson for developing and transition
countries concerns the transition from an excessive reliance
on short-term Treasury bills, held by captive banks, to a
liquid market with long-term instruments held, and actively
traded, by long-term institutional investors. The transition
required moving gradually to medium-term instruments,
experimenting with innovation, and targeting households and
foreign investors, while taking steps to establish policy
credibility by lowering fiscal deficits and inflation. When
reliance on captive sources of finance was substantially
reduced and policy credibility was established, both
countries focused on developing active money markets and
liquid secondary markets with benchmark issues of fixed-rate
long-term securities. They ultimately succeeded in
developing active professional markets, using modern
practices, targeting well-established European institutional
investors, and integrating into the highly sophisticated
euro markets. However, integration into the euro markets was
the culmination of a prolonged effort of modernization and
adaptation and was greatly facilitated by their strong
political commitment to achieve economic convergence and
join the euro zone. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Campanaro, Alessandra Vittas, Dimitri |
| author_facet |
Campanaro, Alessandra Vittas, Dimitri |
| author_sort |
Campanaro, Alessandra |
| title |
Greco-Roman Lessons for Public Debt Management and Debt Market Development |
| title_short |
Greco-Roman Lessons for Public Debt Management and Debt Market Development |
| title_full |
Greco-Roman Lessons for Public Debt Management and Debt Market Development |
| title_fullStr |
Greco-Roman Lessons for Public Debt Management and Debt Market Development |
| title_full_unstemmed |
Greco-Roman Lessons for Public Debt Management and Debt Market Development |
| title_sort |
greco-roman lessons for public debt management and debt market development |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/09/5175068/greco-roman-lessons-public-debt-management-debt-market-development http://hdl.handle.net/10986/14295 |
| _version_ |
1764430714028163072 |
| spelling |
okr-10986-142952021-04-23T14:03:21Z Greco-Roman Lessons for Public Debt Management and Debt Market Development Campanaro, Alessandra Vittas, Dimitri ACCOUNTABILITY ADMINISTRATIVE COSTS ARBITRAGE ASSET MANAGEMENT BALANCE SHEET BANK CREDIT BANK DEPOSITS BANK LIQUIDITY BANK OF GREECE BANK PORTFOLIOS BANKING INSTITUTIONS BANKING SYSTEM BENCHMARK BENCHMARKS BOND MARKETS BONDS BORROWING BUDGET DEFICITS CAPITAL FLOWS CAPITAL MARKETS CENTRAL BANK CERTIFICATES COMMERCIAL BANKS COUPONS CREDIT CEILINGS CREDIT INSTITUTIONS CURRENCY CURRENCY RISK DEALERS DEBT DEBT INSTRUMENTS DEBT MANAGEMENT DEBT MARKETS DEBT SECURITIES DEMATERIALIZATION DEVALUATION DOMESTIC DEBT ECONOMIC BOOM ECONOMIC EXPANSION ECONOMIC PERFORMANCE EFFICIENT MARKETS ENFORCEMENT POWERS EXPENDITURE EXPENDITURES EXPOSURE FINANCIAL INNOVATION FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL MARKETS FINANCIAL SECTOR FISCAL DEFICITS FOREIGN ASSETS FOREIGN CURRENCY FOREIGN DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUTURES GDP GOVERNMENT DEBT GOVERNMENT SECURITIES HOUSING INCOME INDEXATION INFLATION INFLATION RATES INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INTEREST RATE INTEREST RATES INTERNATIONAL BANKS LIQUIDITY LIQUIDITY MANAGEMENT LOCAL CURRENCY LOCAL GOVERNMENTS MARKET PARTICIPANTS MARKET PRICES MARKETABLE DEBT SECURITIES MATURITIES MATURITY MIDDLE INCOME COUNTRIES MONETARY POLICY MONEY MARKET MORTGAGE BANKS MUTUAL FUND NATIONAL DEBT OTC OUTSTANDING DEBT PENSION FUNDS PENSIONS PRIMARY DEALERS PRODUCTIVITY PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURES PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SPENDING PUBLIC SUBSCRIPTION PUBLIC UTILITIES PUBLIC WORKS PURCHASE PRICE REAL INTEREST RATE REDEMPTION REFINANCING REFINANCING RISK REPAYMENT REPO RESERVE REQUIREMENTS RETAIL INVESTORS RISK MANAGEMENT SAVINGS SECONDARY MARKETS SECURITIES SETTLEMENT SUBSTITUTION SUPERVISORY FRAMEWORK TAX TAX COLLECTION TAXATION TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS URBAN PLANNING VARIABLE RATE BONDS Greece and Italy initiated efforts to improve public debt management and develop their domestic debt markets respectively in the late 1970s and mid-1980s. At that time, both countries suffered from large and rapidly growing public debt, excessive reliance on short-term bills held by commercial banks, a strong preference of households to save in bank deposits, and a weak presence of institutional investors (pension funds, insurance companies, and mutual funds). Continuing large fiscal deficits, high levels of interest rates and inflation, and serious policy credibility problems impeded the use of long-term instruments. The authors provide a detailed analysis of the characteristics of the instruments that were used in these two countries, their pace of issuance, and their impact on the composition of public debt. The authors note that the main Greco-Roman lesson for developing and transition countries concerns the transition from an excessive reliance on short-term Treasury bills, held by captive banks, to a liquid market with long-term instruments held, and actively traded, by long-term institutional investors. The transition required moving gradually to medium-term instruments, experimenting with innovation, and targeting households and foreign investors, while taking steps to establish policy credibility by lowering fiscal deficits and inflation. When reliance on captive sources of finance was substantially reduced and policy credibility was established, both countries focused on developing active money markets and liquid secondary markets with benchmark issues of fixed-rate long-term securities. They ultimately succeeded in developing active professional markets, using modern practices, targeting well-established European institutional investors, and integrating into the highly sophisticated euro markets. However, integration into the euro markets was the culmination of a prolonged effort of modernization and adaptation and was greatly facilitated by their strong political commitment to achieve economic convergence and join the euro zone. 2013-07-01T14:36:15Z 2013-07-01T14:36:15Z 2004-09 http://documents.worldbank.org/curated/en/2004/09/5175068/greco-roman-lessons-public-debt-management-debt-market-development http://hdl.handle.net/10986/14295 English en_US Policy Research Working Paper;No.3414 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |