Management of the Nominal Public Debt Theory and Applications

Author/Editor:

Pablo Emilio Guidotti ; Guillermo Calvo

Publication Date:

December 1, 1990

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 90/115

English

Publication Date:

December 1, 1990

ISBN/ISSN:

9781451942798/1018-5941

Stock No:

WPIEA1151990

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

42

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