This paper examines the potential role for foreign official holdings of U.S. Treasury securities and the associated implications for Treasury security interest rates, international portfolio allocations, net international income flows, and the U.S. net international debt position, using a...

In this paper, we derive a structural relationship between the gold price and the U.S. TIPS (Treasury Inflation-Protected Securities) yields under the fact that both the gold and the U.S. dollar are international currency anchors. The relationship can be interpreted as defining the fair value...

Rising U.S. interest rates impact emerging economies through capital outflows and currency depreciations. For those with flexible exchange rates, the appropriate monetary policy response weighs the traditional competitiveness effect with a balance sheet effect created by the presence of foreign...

This paper studies state-contingent debt as an alternative refinancing instrument for advanced economies. In times of high sovereign indebtedness, increasing yields impose eminent debt roll-over risks. We analyze the welfare implications of two state-contingent debt instruments: puttable and...