This paper shows that government debt creates a so far neglected wealth effect that has sizable effects on business … type of shock and contribute to macroeconomic stability. We provide evidence for the United States that debt moves … policy. We show that procyclical debt generates smaller fluctuations compared to countercyclical debt. The striking …

-domain properties of debt service implied by various financing srategies. This orginal approach is valuable to public debt managers … interest payments is lower when nominal long-term bonds are issued. From a budget-smoothing perspective, debt service … variability plays a major role, but pro- or counter-cyclicality of debt service also matters. In this respect, the results suggest …

demand in the corporate debt market. We take into account the effect of the competitive environment, as well as the risk … equilibrium in the debt market. …

-run – especially, in the case of debt crises -, in line with the concerns about long-term debt sustainability. …

under European Monetary Union determines the short end of the yield curves, whereas decentralized debt policies drive … expected changes in debt/GDP ratios of the respective countries. Our model explains spreads both before and during the crisis … of sovereign default at any maturity and assess their elasticity to shifts in expected changes in debt/GDP ratios. …

budgetary decisions is an element likely to increase the likelihood of a decrease in their deficit and debt ratios beyond the … will not succeed in stabilizing their national debt ratio, because their discretionary fiscal policy is less pro cyclical. …