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On the irrelevance of the maturity structure of government debt without commitment

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  • Christopher Phelan

Abstract

This paper presents a government debt game with the property that if the timing of debt auctions within a period is sufficiently unfettered, the set of equilibrium outcome paths of real economic variables given the government has access to a rich debt structure is identical to the set of equilibrium outcome paths given the government can issue only one-period debt.

Suggested Citation

  • Christopher Phelan, 2001. "On the irrelevance of the maturity structure of government debt without commitment," Staff Report 268, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmsr:268
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    References listed on IDEAS

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    1. Alberto Alesina & Alessandro Prati & Guido Tabellini, 1989. "Public Confidence and Debt Management: A Model and A Case Study of Italy," NBER Working Papers 3135, National Bureau of Economic Research, Inc.
    2. V. V. Chari & Patrick J. Kehoe, 1993. "Sustainable Plans and Mutual Default," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 175-195.
    3. Calvo, Guillermo A, 1988. "Servicing the Public Debt: The Role of Expectations," American Economic Review, American Economic Association, vol. 78(4), pages 647-661, September.
    4. Lucas, Robert Jr. & Stokey, Nancy L., 1983. "Optimal fiscal and monetary policy in an economy without capital," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 55-93.
    5. Harold L. Cole & Timothy J. Kehoe, 2000. "Self-Fulfilling Debt Crises," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(1), pages 91-116.
    6. Chari, V V & Kehoe, Patrick J, 1990. "Sustainable Plans," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 783-802, August.
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    Cited by:

    1. Niepelt, Dirk, 2014. "Debt maturity without commitment," Journal of Monetary Economics, Elsevier, vol. 68(S), pages 37-54.
    2. Dirk Niepelt, 2018. "Financial Policy," Diskussionsschriften dp1802, Universitaet Bern, Departement Volkswirtschaft.
    3. Alessandro Dovis, 2013. "Efficient Sovereign Default," 2013 Meeting Papers 293, Society for Economic Dynamics.
    4. Dirk Niepelt, 2009. "Sovereign Debt Maturity without Commitment," 2009 Meeting Papers 231, Society for Economic Dynamics.

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    Debt;

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