Schreft, Stacey L; Smith, Bruce D - In: Journal of Money, Credit and Banking 34 (2002) 3, pp. 848-82
This article considers the consequences for a central bank of a declining stock of government debt. The model has a treasury that taxes, spends, and issues debt; a central bank that conducts open market operations in treasury debt; and banks that intermediate private savings. It suggests that a...