Borrowing Short- or Long-Term: Does the Government Really Face a Trade-off?
AbstractThis paper considers a broader fiscal policy framework in public debt management decisions by examining the interrelations between interest rates and the economy. This approach has the potential to result in a new optimal debt maturity structure. A shorter debt structure is generally less expensive and may also contribute to stabilize the budget balance as interest rates tend to decline when the economy is weak. Ce papier envisage le cadre plus large de la politique budgétaire dans les décisions de gestion de la dette publique tout en examinant les interrelations entre les taux d’intérêts et l’économie. Cette approche peut potentiellement résulter en une nouvelle structure optimale de maturité de la dette. Une structure plus à court terme est généralement moins coûteuse et peut contribuer à stabiliser la balance budgétaire si les taux d’intérêt tendent à baisser quand l’économie est fragile.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Finance Canada in its series Working Papers-Department of Finance Canada with number 2003-16.
Date of creation:
Date of revision:
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mark Kamstra & Robert Shiller, 2009.
"The Case for Trills: Giving the People and Their Pension Funds a Stake in the Wealth of the Nation,"
Yale School of Management Working Papers
amz2418, Yale School of Management.
- Mark J. Kamstra & Robert J. Shiller, 2009. "The Case for Trills: Giving the People and Their Pension Funds a Stake in the Wealth of the Nation," Cowles Foundation Discussion Papers 1717, Cowles Foundation for Research in Economics, Yale University.
- Virginie Traclet, 2004. "Monetary and Fiscal Policies in Canada: Some Interesting Principles for EMU?," Working Papers 04-28, Bank of Canada.
- Marian Dobranschi, 2010. "The sustainability of public debt in Romania in economic and financial crisis," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 15.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gustavo Durango) The email address of this maintainer does not seem to be valid anymore. Please ask Gustavo Durango to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.