A comparative-advantage approach to government debt maturity
Our rough guess is there are 12,250 words in this book.
At a pace averaging 250 words per minute, this book will take 0 hours and 49 minutes to read. With a half hour per day, this will take 2 days to read.
How long will it take you?
This book will take an estimated to read at a reading speed averaging words per minute. With 30 minutes per day, this will take to read.
Enter your reading speedYou can take one of our WPM reading speed tests to find your reading speed.
Create a free account to track your reading progress, build your reading list, and set reading goals.
Author
Contributions
- Hanson, Samuel (Samuel Gregory) - Contributor
- Stein, Jeremy C. - Contributor
- Harvard Business School - Contributor
Publication
2010 - Harvard Business School, Boston, Massachusetts
Language
English
Word Count
12,250 words, Guess
Page Count
49 pages
Identifiers
- OCLC Control Number669272139
- Open LibraryOL45299753M
Description
We study optimal government debt maturity in a model where investors derive monetary services from holding riskless short-term securities. In a simple setting where the government is the only issuer of such riskless paper, it trades off the monetary premium associated with short-term debt against the refinancing risk implied by the need to roll over its debt more often. We then extend the model to allow private financial intermediaries to compete with the government in the provision of money-like claims. We argue that if there are negative externalities associated with private money creation, the government should tilt its issuance more towards short maturities. The idea is that the government may have a comparative advantage relative to the private sector in bearing refinancing risk, and hence should aim to partially crowd out the private sector's use of short-term debt.
Subjects
Series Statement
- Working paper / Harvard Business School -- 11-035
Reader Reviews
No reviews yet for this book.
Be the first to share your thoughts!