Strategic Debt Management within the Stability and Growth Pact
Summary Opportunistic politicians use the composition of public debt as a signal for competence. A competent government will not issue long-term nominal debt, as optimal to balance the budget, but long-term inflation-indexed debt. We consider politicians that pursue the objective of a balanced budget subject to the Stability and Growth Pact and reelection. A government’s competence is reflected by its ability to produce a public service at a lower cost (taxes). Competence is private information of politicians.
Year of publication: |
2010
|
---|---|
Authors: | Sieg, Gernot ; Stegemann, Ulrike |
Published in: |
Review of Economics. - Lucius & Lucius, ISSN 2366-035X, ZDB-ID 2178720-7. - Vol. 61.2010, 3, p. 225-240
|
Publisher: |
Lucius & Lucius |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Strategic debt management within the stability and growth pact
Sieg, Gernot, (2009)
-
An international agreement with full participation to tackle the stock of greenhouse gases
Kratzsch, Uwe, (2011)
-
A full participation agreement on global emission reduction through strategic investments in R&D
Kratzsch, Uwe, (2010)
- More ...