Managing the Public Debt in Fiscal Stabilizations: The Evidence

  title={Managing the Public Debt in Fiscal Stabilizations: The Evidence},
  author={Alessandro Missale and Francesco Giavazzi and Pierpaolo Benigno},
This paper provides evidence on the behavior of public debt managers during scal stabilizations in OECD countries over the last two decades. We nd that debt maturity tends to lengthen the more credible is the program, the lower is the long-term interest rate and the higher is the volatility of shortterm interest rates. We show that this debt issuing strategy is consistent with optimal debt management if information bewteen the government and private investors is asymmetric, as it is usually the… CONTINUE READING
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