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Managing Public Debt and Its Financial Stability Implications

Author

Listed:
  • Mr. Udaibir S Das
  • Jay Surti
  • Mr. Faisal Ahmed
  • Mr. Michael G. Papaioannou
  • Mr. Guilherme Pedras

Abstract

This paper explores the relationship between the level and management of public debt and financial stability, and explains the channels through which the two are interlinked. It suggests that the broader implications of a debt management strategy and its implementation should be carefully analyzed by debt managers and policy makers in terms of their impact on the government's balance sheet, macroeconomic developments, and the financial system.

Suggested Citation

  • Mr. Udaibir S Das & Jay Surti & Mr. Faisal Ahmed & Mr. Michael G. Papaioannou & Mr. Guilherme Pedras, 2010. "Managing Public Debt and Its Financial Stability Implications," IMF Working Papers 2010/280, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2010/280
    as

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    References listed on IDEAS

    as
    1. Ms. Anastasia Guscina & Mr. Olivier D Jeanne, 2006. "Government Debt in Emerging Market Countries: A New Data Set," IMF Working Papers 2006/098, International Monetary Fund.
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    4. Mr. Michael Kumhof & Mr. Evan C Tanner, 2005. "Government Debt: A Key Role in Financial Intermediation," IMF Working Papers 2005/057, International Monetary Fund.
    5. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    6. Ms. Anastasia Guscina, 2008. "Impact of Macroeconomic, Political, and Institutional Factors on the Structure of Government Debt in Emerging Market Countries," IMF Working Papers 2008/205, International Monetary Fund.
    7. Michael G. Papaioannou, 2009. "Exchange Rate Risk Measurement and Management: Issues and Approaches for Public Debt Managers," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 7(1), pages 7-34.
    8. Mr. Amadou N Sy, 2005. "Managing the Interest Rate Risk of Indian Banks’ Government Securities Holdings," IMF Working Papers 2005/078, International Monetary Fund.
    9. Mr. Brad Setser & Mr. Ioannis Halikias & Mr. Alexander Pitt & Mr. Christoph B. Rosenberg & Mr. Brett E. House & Mr. Jens Nystedt & Mr. Christian Keller, 2005. "Debt-Related Vulnerabilities and Financial Crises," IMF Occasional Papers 2005/008, International Monetary Fund.
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    Keywords

    WP; investor; market; debt; bond market;
    All these keywords.

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