A new state debt cycle occurred mainly through external and contracted credit operations with federal banks from 2008, after a long period with few loans and debt stock fall. It is argued that exogenous macroeconomic factors were essential in the downward trend of the debt in the early 2000s,...

The paper gives an overview over issues concerning the role of financial stability in monetary policy and the relation between banking supervision and central banking. Following a brief account of developments in the European Monetary Union since its creation, the systematic treatment contains...

We develop a new measure of relative debt transparency by comparing the amount of state debt reported in the annual Census survey and the amount reported in the statistical section of the state Comprehensive Annual Financial Report (CAFR). GASB 44 requires states to start reporting their total...

There are many positive aspects associated with subnational borrowing, including additional funding and promoting intergenerational equity. However, it may also endanger fiscal sustainability and macro stability due to moral hazard and soft budget constraints, making borrowing controls justified...

We investigate the political determinants of risk premiums which sub-national governments in Switzerland have to pay for their sovereign bond emissions. For this purpose we make use of financial market data from 288 tradable cantonal bonds in the period from 1981 to 2007. Our main focus is on...

Die Verschuldung der Kommunen in Nordrhein-Westfalen (NRW) hat in den vergangenen 20 Jahren deutlich zugenommen. Dabei haben sich Bürgermeister und Kämmerer großzügig an Kassenkrediten bedient, die lediglich zur Liquiditätssicherung vorgesehen sind. Der kontinuierliche Anstieg der...

Nach den Berechnungen der Autoren mit dem vom Stabilitätsrat verwendeten Aggregierten Quotierungsverfahren (AQV) konnten im Jahr 2017 schon 14 Bundesländer strukturell mindestens ausgeglichene Haushalte erzielen. In der aktuellen Niedrigzinsphase überzeichnet das AQV jedoch die erzielten...

Nach den Berechnungen der Autoren mit dem vom Stabilitätsrat verwendeten Aggregierten Quotierungsverfahren (AQV) konnten im Jahr 2017 schon 14 Bundesländer strukturell mindestens ausgeglichene Haushalte erzielen. In der aktuellen Niedrigzinsphase überzeichnet das AQV jedoch die erzielten...

This paper provides evidence of bounded rationality by large dealers in U.S. Treasury auctions. I argue that these dealers use a heuristic of yield-space bidding which leads to biases manifested in three ways: they submit dominated bids, i.e., those that could be improved without raising the...