Public Debt Management and Macroeconomic Stability : An Overview

Recent research suggests that management of the public sector debt can have important effects on a country macroeconomic performance. This Public debt management and macroeconomic stability article provides an overview of the factors that the recen...

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Main Author: Montiel, Peter J.
Format: Journal Article
Language:English
en_US
Published: Oxford University Press on behalf of the World Bank 2013
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2013/01/17591907/public-debt-management-macroeconomic-stability-overview
http://hdl.handle.net/10986/16400
id okr-10986-16400
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 ADVERSE CONSEQUENCES
ADVERSE EFFECTS
AMORTIZATION
AMOUNT OF DEBT
ASYMMETRIC INFORMATION
BAILOUTS
BALANCE OF PAYMENTS
BALANCE SHEET
BALANCE SHEET EFFECTS
BENCHMARK
BORROWING COSTS
CAPITAL MOBILITY
CAPITAL OUTFLOWS
CENTRAL BANK
CLOSED ECONOMY
COMMERCIAL BANKS
COMPOSITION OF DEBT
CONTINGENT LIABILITIES
COUNTRY RISK
CREDIBILITY
CREDIBILITY PROBLEM
CREDIBILITY PROBLEMS
CREDITORS
CURRENCY
CURRENCY BOARD
CURRENCY COMPOSITION
CURRENCY CRISES
CURRENCY CRISIS
CURRENCY DEPRECIATION
CURRENCY MISMATCH
DEBT COMPOSITION
DEBT CONTRACTS
DEBT CRISIS
DEBT INSTRUMENT
DEBT MANAGEMENT POLICIES
DEBT MANAGEMENT PRACTICES
DEBT MANAGEMENT STRATEGY
DEBT MATURITIES
DEBT MATURITY
DEBT OBLIGATIONS
DEBT OVERHANG
DEBT REPAYMENT
DEBT REPUDIATION
DEBT SERVICE
DEBT SERVICE OBLIGATIONS
DEBT SERVICE PAYMENTS
DEBT SERVICE REQUIREMENTS
DEBT SERVICING
DEBT SERVICING COSTS
DEBT SERVICING NEEDS
DEBT STRUCTURE
DEBT-SERVICING COSTS
DEFAULT PROBABILITIES
DEFAULT PROBABILITY
DEFICITS
DEMAND FOR GOVERNMENT SECURITIES
DEMAND FOR MONEY
DEPOSIT
DEVALUATION
DEVELOPING COUNTRIES
DEVELOPING ECONOMIES
DOMESTIC AGENTS
DOMESTIC CREDITORS
DOMESTIC CURRENCY
DOMESTIC ECONOMY
DOMESTIC FINANCIAL MARKET
DOMESTIC FINANCIAL MARKETS
DOMESTIC INFLATION
DOMESTIC INTEREST RATES
DOMESTIC PRICE
ECONOMIC DEVELOPMENT
EMERGING ECONOMIES
EMERGING ECONOMY
EMERGING ECONOMY GOVERNMENTS
EQUILIBRIUM
EQUILIBRIUM VALUE
EXCHANGE RATE
EXCHANGE RATE MOVEMENTS
EXCHANGE RATES
EXPANSIONARY POLICIES
EXPENDITURE
EXTERNAL BORROWING
FEDERAL RESERVE
FEDERAL RESERVE BANK
FINANCES
FINANCIAL ASSETS
FINANCIAL CRISIS
FINANCIAL DEVELOPMENT
FINANCIAL FRAGILITY
FINANCIAL INSTITUTIONS
FINANCIAL MARKET DEVELOPMENT
FINANCIAL MARKETS
FINANCIAL SECTOR
FINANCIAL SYSTEM
FINANCIALLY OPEN ECONOMY
FISCAL POLICIES
FISCAL POLICY
FLEXIBLE INTEREST RATES
FLOATING EXCHANGE RATE
FLOATING EXCHANGE RATES
FOREIGN CURRENCY
FOREIGN CURRENCY DEBT
FOREIGN CURRENCY EXPOSURE
FOREIGN EXCHANGE
FOREIGN EXCHANGE RESERVES
GOVERNMENT BUDGET
GOVERNMENT DEFAULT
GOVERNMENT EXPENDITURES
GOVERNMENT FINANCING
GOVERNMENT REVENUE
GOVERNMENT SPENDING
HOLDERS OF GOVERNMENT DEBT
HOLDING
IMPLICIT TAX
IMPLICIT TAXES
INCOME
INCOME LEVELS
INDEXATION
INDEXED BONDS
INFLATION
INFLATION RATE
INFLATION TARGET
INFLATION TARGETING
INFLATION TAX
INFORMATIONAL ASYMMETRY
INSTITUTIONAL CONSTRAINTS
INSTRUMENT
INTEREST RATE
INTEREST RATE RISK
INTEREST RATE SHOCKS
INTERNATIONAL BANK
INTERNATIONAL ECONOMICS
ISSUANCE
LEGAL SYSTEM
LEVEL OF DEBT
LEVY
LIABILITY
LIQUID ASSETS
LIQUID RESERVES
LIQUIDITY
LOAN
LONG-TERM DEBT
LONG-TERM LOANS
MACROECONOMIC FLUCTUATIONS
MACROECONOMIC INSTABILITY
MACROECONOMIC PERFORMANCE
MACROECONOMIC SHOCKS
MACROECONOMIC STABILITY
MACROECONOMICS
MARGINAL COST
MARKET ACCESS
MARKET DEVELOPMENT
MARKET INTEREST
MARKET INTEREST RATES
MARKET RETURNS
MATURITY
MATURITY STRUCTURE
MONETARY POLICY
MORAL HAZARD
NATURAL DISASTERS
NOMINAL INTEREST RATE
NOMINAL INTEREST RATES
OPEN ECONOMY
OPEN MARKETS
OUTPUT
OUTSTANDING DEBT
POLITICAL ECONOMY
PORTFOLIO
PRIMARY MARKET
PRIMARY MARKETS
PRINCIPAL PAYMENTS
PUBLIC DEBT
PUBLIC DEBT MANAGEMENT
PUBLIC FINANCE
PUBLIC SECTOR BORROWING
PUBLIC SECTOR DEBT
PUBLIC SPENDING
REAL EXCHANGE RATE
REAL INTEREST
REAL INTEREST RATE
REAL INTEREST RATES
REGIME CHANGE
RELIANCE ON SHORT-TERM DEBT
REPUTATION
RESERVE
RETURN
RISK EXPOSURE
RISK EXPOSURES
SECURITIES
SHORT MATURITIES
SHORT MATURITY
SHORT-TERM DEBT
SHORT-TERM FINANCE
SHORT-TERM LIABILITIES
SOCIAL COST
SOCIAL COSTS
SOLVENCY
STATE-CONTINGENT CONTRACTS
STOCK OF DEBT
STOCKS
TAX
TAX COLLECTION
TAX RATE
TAX RATES
TAX REVENUES
TAX SYSTEM
TAXATION
TRADING
TRANSACTION
TRANSACTION COSTS
TREASURY
spellingShingle ADVERSE CONSEQUENCES
ADVERSE EFFECTS
AMORTIZATION
AMOUNT OF DEBT
ASYMMETRIC INFORMATION
BAILOUTS
BALANCE OF PAYMENTS
BALANCE SHEET
BALANCE SHEET EFFECTS
BENCHMARK
BORROWING COSTS
CAPITAL MOBILITY
CAPITAL OUTFLOWS
CENTRAL BANK
CLOSED ECONOMY
COMMERCIAL BANKS
COMPOSITION OF DEBT
CONTINGENT LIABILITIES
COUNTRY RISK
CREDIBILITY
CREDIBILITY PROBLEM
CREDIBILITY PROBLEMS
CREDITORS
CURRENCY
CURRENCY BOARD
CURRENCY COMPOSITION
CURRENCY CRISES
CURRENCY CRISIS
CURRENCY DEPRECIATION
CURRENCY MISMATCH
DEBT COMPOSITION
DEBT CONTRACTS
DEBT CRISIS
DEBT INSTRUMENT
DEBT MANAGEMENT POLICIES
DEBT MANAGEMENT PRACTICES
DEBT MANAGEMENT STRATEGY
DEBT MATURITIES
DEBT MATURITY
DEBT OBLIGATIONS
DEBT OVERHANG
DEBT REPAYMENT
DEBT REPUDIATION
DEBT SERVICE
DEBT SERVICE OBLIGATIONS
DEBT SERVICE PAYMENTS
DEBT SERVICE REQUIREMENTS
DEBT SERVICING
DEBT SERVICING COSTS
DEBT SERVICING NEEDS
DEBT STRUCTURE
DEBT-SERVICING COSTS
DEFAULT PROBABILITIES
DEFAULT PROBABILITY
DEFICITS
DEMAND FOR GOVERNMENT SECURITIES
DEMAND FOR MONEY
DEPOSIT
DEVALUATION
DEVELOPING COUNTRIES
DEVELOPING ECONOMIES
DOMESTIC AGENTS
DOMESTIC CREDITORS
DOMESTIC CURRENCY
DOMESTIC ECONOMY
DOMESTIC FINANCIAL MARKET
DOMESTIC FINANCIAL MARKETS
DOMESTIC INFLATION
DOMESTIC INTEREST RATES
DOMESTIC PRICE
ECONOMIC DEVELOPMENT
EMERGING ECONOMIES
EMERGING ECONOMY
EMERGING ECONOMY GOVERNMENTS
EQUILIBRIUM
EQUILIBRIUM VALUE
EXCHANGE RATE
EXCHANGE RATE MOVEMENTS
EXCHANGE RATES
EXPANSIONARY POLICIES
EXPENDITURE
EXTERNAL BORROWING
FEDERAL RESERVE
FEDERAL RESERVE BANK
FINANCES
FINANCIAL ASSETS
FINANCIAL CRISIS
FINANCIAL DEVELOPMENT
FINANCIAL FRAGILITY
FINANCIAL INSTITUTIONS
FINANCIAL MARKET DEVELOPMENT
FINANCIAL MARKETS
FINANCIAL SECTOR
FINANCIAL SYSTEM
FINANCIALLY OPEN ECONOMY
FISCAL POLICIES
FISCAL POLICY
FLEXIBLE INTEREST RATES
FLOATING EXCHANGE RATE
FLOATING EXCHANGE RATES
FOREIGN CURRENCY
FOREIGN CURRENCY DEBT
FOREIGN CURRENCY EXPOSURE
FOREIGN EXCHANGE
FOREIGN EXCHANGE RESERVES
GOVERNMENT BUDGET
GOVERNMENT DEFAULT
GOVERNMENT EXPENDITURES
GOVERNMENT FINANCING
GOVERNMENT REVENUE
GOVERNMENT SPENDING
HOLDERS OF GOVERNMENT DEBT
HOLDING
IMPLICIT TAX
IMPLICIT TAXES
INCOME
INCOME LEVELS
INDEXATION
INDEXED BONDS
INFLATION
INFLATION RATE
INFLATION TARGET
INFLATION TARGETING
INFLATION TAX
INFORMATIONAL ASYMMETRY
INSTITUTIONAL CONSTRAINTS
INSTRUMENT
INTEREST RATE
INTEREST RATE RISK
INTEREST RATE SHOCKS
INTERNATIONAL BANK
INTERNATIONAL ECONOMICS
ISSUANCE
LEGAL SYSTEM
LEVEL OF DEBT
LEVY
LIABILITY
LIQUID ASSETS
LIQUID RESERVES
LIQUIDITY
LOAN
LONG-TERM DEBT
LONG-TERM LOANS
MACROECONOMIC FLUCTUATIONS
MACROECONOMIC INSTABILITY
MACROECONOMIC PERFORMANCE
MACROECONOMIC SHOCKS
MACROECONOMIC STABILITY
MACROECONOMICS
MARGINAL COST
MARKET ACCESS
MARKET DEVELOPMENT
MARKET INTEREST
MARKET INTEREST RATES
MARKET RETURNS
MATURITY
MATURITY STRUCTURE
MONETARY POLICY
MORAL HAZARD
NATURAL DISASTERS
NOMINAL INTEREST RATE
NOMINAL INTEREST RATES
OPEN ECONOMY
OPEN MARKETS
OUTPUT
OUTSTANDING DEBT
POLITICAL ECONOMY
PORTFOLIO
PRIMARY MARKET
PRIMARY MARKETS
PRINCIPAL PAYMENTS
PUBLIC DEBT
PUBLIC DEBT MANAGEMENT
PUBLIC FINANCE
PUBLIC SECTOR BORROWING
PUBLIC SECTOR DEBT
PUBLIC SPENDING
REAL EXCHANGE RATE
REAL INTEREST
REAL INTEREST RATE
REAL INTEREST RATES
REGIME CHANGE
RELIANCE ON SHORT-TERM DEBT
REPUTATION
RESERVE
RETURN
RISK EXPOSURE
RISK EXPOSURES
SECURITIES
SHORT MATURITIES
SHORT MATURITY
SHORT-TERM DEBT
SHORT-TERM FINANCE
SHORT-TERM LIABILITIES
SOCIAL COST
SOCIAL COSTS
SOLVENCY
STATE-CONTINGENT CONTRACTS
STOCK OF DEBT
STOCKS
TAX
TAX COLLECTION
TAX RATE
TAX RATES
TAX REVENUES
TAX SYSTEM
TAXATION
TRADING
TRANSACTION
TRANSACTION COSTS
TREASURY
Montiel, Peter J.
Public Debt Management and Macroeconomic Stability : An Overview
description Recent research suggests that management of the public sector debt can have important effects on a country macroeconomic performance. This Public debt management and macroeconomic stability article provides an overview of the factors that the recent literature has identified as important in determining the optimal composition of the public debt. Based on this analysis, it attempts to establish general guidelines for public debt management in emerging economies. To retain market access and promote domestic financial market development, governments should generally finance themselves at market rates using a wide variety of securities. Beyond this general principle, the optimal composition of the public debt involves a tradeoff between enhancing the government anti-inflationary credibility and reducing the vulnerability of its budget to macroeconomic shocks. Consequently, the optimal composition of the debt depends on a country circumstances. Debt should be heavily weighted toward long-term nominal securities for governments that have anti-inflationary credibility and toward long-term indexed debt for those that do not.
format Journal Article
author Montiel, Peter J.
author_facet Montiel, Peter J.
author_sort Montiel, Peter J.
title Public Debt Management and Macroeconomic Stability : An Overview
title_short Public Debt Management and Macroeconomic Stability : An Overview
title_full Public Debt Management and Macroeconomic Stability : An Overview
title_fullStr Public Debt Management and Macroeconomic Stability : An Overview
title_full_unstemmed Public Debt Management and Macroeconomic Stability : An Overview
title_sort public debt management and macroeconomic stability : an overview
publisher Oxford University Press on behalf of the World Bank
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/01/17591907/public-debt-management-macroeconomic-stability-overview
http://hdl.handle.net/10986/16400
_version_ 1764433481278947328
spelling okr-10986-164002021-04-23T14:03:30Z Public Debt Management and Macroeconomic Stability : An Overview Montiel, Peter J. ADVERSE CONSEQUENCES ADVERSE EFFECTS AMORTIZATION AMOUNT OF DEBT ASYMMETRIC INFORMATION BAILOUTS BALANCE OF PAYMENTS BALANCE SHEET BALANCE SHEET EFFECTS BENCHMARK BORROWING COSTS CAPITAL MOBILITY CAPITAL OUTFLOWS CENTRAL BANK CLOSED ECONOMY COMMERCIAL BANKS COMPOSITION OF DEBT CONTINGENT LIABILITIES COUNTRY RISK CREDIBILITY CREDIBILITY PROBLEM CREDIBILITY PROBLEMS CREDITORS CURRENCY CURRENCY BOARD CURRENCY COMPOSITION CURRENCY CRISES CURRENCY CRISIS CURRENCY DEPRECIATION CURRENCY MISMATCH DEBT COMPOSITION DEBT CONTRACTS DEBT CRISIS DEBT INSTRUMENT DEBT MANAGEMENT POLICIES DEBT MANAGEMENT PRACTICES DEBT MANAGEMENT STRATEGY DEBT MATURITIES DEBT MATURITY DEBT OBLIGATIONS DEBT OVERHANG DEBT REPAYMENT DEBT REPUDIATION DEBT SERVICE DEBT SERVICE OBLIGATIONS DEBT SERVICE PAYMENTS DEBT SERVICE REQUIREMENTS DEBT SERVICING DEBT SERVICING COSTS DEBT SERVICING NEEDS DEBT STRUCTURE DEBT-SERVICING COSTS DEFAULT PROBABILITIES DEFAULT PROBABILITY DEFICITS DEMAND FOR GOVERNMENT SECURITIES DEMAND FOR MONEY DEPOSIT DEVALUATION DEVELOPING COUNTRIES DEVELOPING ECONOMIES DOMESTIC AGENTS DOMESTIC CREDITORS DOMESTIC CURRENCY DOMESTIC ECONOMY DOMESTIC FINANCIAL MARKET DOMESTIC FINANCIAL MARKETS DOMESTIC INFLATION DOMESTIC INTEREST RATES DOMESTIC PRICE ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING ECONOMY EMERGING ECONOMY GOVERNMENTS EQUILIBRIUM EQUILIBRIUM VALUE EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATES EXPANSIONARY POLICIES EXPENDITURE EXTERNAL BORROWING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL FRAGILITY FINANCIAL INSTITUTIONS FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEM FINANCIALLY OPEN ECONOMY FISCAL POLICIES FISCAL POLICY FLEXIBLE INTEREST RATES FLOATING EXCHANGE RATE FLOATING EXCHANGE RATES FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN CURRENCY EXPOSURE FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES GOVERNMENT BUDGET GOVERNMENT DEFAULT GOVERNMENT EXPENDITURES GOVERNMENT FINANCING GOVERNMENT REVENUE GOVERNMENT SPENDING HOLDERS OF GOVERNMENT DEBT HOLDING IMPLICIT TAX IMPLICIT TAXES INCOME INCOME LEVELS INDEXATION INDEXED BONDS INFLATION INFLATION RATE INFLATION TARGET INFLATION TARGETING INFLATION TAX INFORMATIONAL ASYMMETRY INSTITUTIONAL CONSTRAINTS INSTRUMENT INTEREST RATE INTEREST RATE RISK INTEREST RATE SHOCKS INTERNATIONAL BANK INTERNATIONAL ECONOMICS ISSUANCE LEGAL SYSTEM LEVEL OF DEBT LEVY LIABILITY LIQUID ASSETS LIQUID RESERVES LIQUIDITY LOAN LONG-TERM DEBT LONG-TERM LOANS MACROECONOMIC FLUCTUATIONS MACROECONOMIC INSTABILITY MACROECONOMIC PERFORMANCE MACROECONOMIC SHOCKS MACROECONOMIC STABILITY MACROECONOMICS MARGINAL COST MARKET ACCESS MARKET DEVELOPMENT MARKET INTEREST MARKET INTEREST RATES MARKET RETURNS MATURITY MATURITY STRUCTURE MONETARY POLICY MORAL HAZARD NATURAL DISASTERS NOMINAL INTEREST RATE NOMINAL INTEREST RATES OPEN ECONOMY OPEN MARKETS OUTPUT OUTSTANDING DEBT POLITICAL ECONOMY PORTFOLIO PRIMARY MARKET PRIMARY MARKETS PRINCIPAL PAYMENTS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC FINANCE PUBLIC SECTOR BORROWING PUBLIC SECTOR DEBT PUBLIC SPENDING REAL EXCHANGE RATE REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES REGIME CHANGE RELIANCE ON SHORT-TERM DEBT REPUTATION RESERVE RETURN RISK EXPOSURE RISK EXPOSURES SECURITIES SHORT MATURITIES SHORT MATURITY SHORT-TERM DEBT SHORT-TERM FINANCE SHORT-TERM LIABILITIES SOCIAL COST SOCIAL COSTS SOLVENCY STATE-CONTINGENT CONTRACTS STOCK OF DEBT STOCKS TAX TAX COLLECTION TAX RATE TAX RATES TAX REVENUES TAX SYSTEM TAXATION TRADING TRANSACTION TRANSACTION COSTS TREASURY Recent research suggests that management of the public sector debt can have important effects on a country macroeconomic performance. This Public debt management and macroeconomic stability article provides an overview of the factors that the recent literature has identified as important in determining the optimal composition of the public debt. Based on this analysis, it attempts to establish general guidelines for public debt management in emerging economies. To retain market access and promote domestic financial market development, governments should generally finance themselves at market rates using a wide variety of securities. Beyond this general principle, the optimal composition of the public debt involves a tradeoff between enhancing the government anti-inflationary credibility and reducing the vulnerability of its budget to macroeconomic shocks. Consequently, the optimal composition of the debt depends on a country circumstances. Debt should be heavily weighted toward long-term nominal securities for governments that have anti-inflationary credibility and toward long-term indexed debt for those that do not. 2013-12-19T19:02:40Z 2013-12-19T19:02:40Z 2005-09-01 Journal Article http://documents.worldbank.org/curated/en/2013/01/17591907/public-debt-management-macroeconomic-stability-overview World Bank Research Observer doi:10.1093/wbro/lki006 http://hdl.handle.net/10986/16400 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article