Series: IMF Working Papers
Author(s): Torbjorn Becker
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 1999
Keywords: tax smoothing, portfolio choice, moral hazard, bailouts, public debt management, bonds, public debt, foreign bonds, tax base
This paper addresses how public debt should be managed to reduce the cost of private sector bailouts. It uses a tax smoothing model to show that bailouts affect the timing of government deficits and surpluses as we...