Cover IMF Working Papers
Management of the Nominal Public Debt Theory and Applications
Author: Mr. Pablo Emilio Guidotti and Mr. Guillermo Calvo
Series:
IMF Working Papers
Volume/Issue:
Volume 1990: Issue 115
Language:
English
Publication Date:
01 Dec 1990
DOI:
https://doi.org/10.5089/9781451942798.001
ISBN:
9781451942798
ISSN:
1018-5941
Pages:
42
Keywords:
WP; inflation rate; maturity structure; debt maturity; debt aversion; debt policy; debt level; debt repayment; government debt obligation; maturity composition; Inflation; Government debt management; Tax arrears management
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund