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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| Format: | Journal Article |
| Language: | English en_US |
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Oxford University Press on behalf of the World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17591907/public-debt-management-macroeconomic-stability-overview http://hdl.handle.net/10986/16400 |
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okr-10986-16400 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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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 |