Strategic debt management within a Revised Stability and Growth Pact

Konferenzbeitrag

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Economic Policy in the EMU ; No. F16-V3

Classification and Topics

• Classification: Wirtschaft ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; National Debt; Debt Management; Sovereign Debt ; Business Fluctuations; Cycles
• Subject: Political Budget Cycle ; Debt Management ; Indexed Bonds ; Stability Pact

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sieg, Gernot ; Stegemann, Ulrike
• Event: Veröffentlichung
• (who): Verein für Socialpolitik
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37399
• Last update: 10.03.2025, 11:43 AM CET