Arbeitspapier
Manufacturing Risk-Free Government Debt
Governments face a trade-off between insuring bondholders and taxpayers. If the government fully insures bondholders by manufacturing risk-free zero-beta debt, then it cannot also insure taxpayers against permanent macroeconomic shocks over long horizons. Instead, taxpayers will pay more in taxes in bad times. Conversely, if the government fully insures taxpayers against adverse macro shocks, then the debt becomes risky, at least as risky as unlevered equity claim. As the world’s safe asset supplier, the U.S. appears to have escaped this trade-off thus far, whereas the U.K. has not.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 8902
- Klassifikation
-
Wirtschaft
Fiscal Policy
International Lending and Debt Problems
Asset Pricing; Trading Volume; Bond Interest Rates
- Thema
-
fiscal policy
term structure
debt maturity
convenience yield
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Jiang, Zhengyang
Lustig, Hanno
Nieuwerburgh, Stijn Van
Xiaolan, Mindy Z.
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and Ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Jiang, Zhengyang
- Lustig, Hanno
- Nieuwerburgh, Stijn Van
- Xiaolan, Mindy Z.
- Center for Economic Studies and Ifo Institute (CESifo)
Entstanden
- 2021
Ähnliche Objekte (12)
Government Debt as Insurance against Macroeconomic Risk
Banks' Portfolio of Government Debt and Sovereign Risk
Default risk on Finnish government foreign currency debt
Government Debt in Europe
Regulation and government debt
Long Term Government Debt, Financial Fragility and Sovereign Default Risk
Government debt and economic growth
The safety of government debt
Politicians' coherence and government debt
Ideological polarization and government debt
The economic consequences of rising US government debt: privileges at risk
Debt sustainability under catastrophic risk: The case for government budget insurance
Government Debt as Insurance against Macroeconomic Risk
Banks' Portfolio of Government Debt and Sovereign Risk
Default risk on Finnish government foreign currency debt
Government Debt in Europe
Regulation and government debt
Long Term Government Debt, Financial Fragility and Sovereign Default Risk
Government debt and economic growth
The safety of government debt
Politicians' coherence and government debt
Ideological polarization and government debt
The economic consequences of rising US government debt: privileges at risk
Debt sustainability under catastrophic risk: The case for government budget insurance
Government Debt as Insurance against Macroeconomic Risk
Banks' Portfolio of Government Debt and Sovereign Risk
Default risk on Finnish government foreign currency debt
Government Debt in Europe
Regulation and government debt
Long Term Government Debt, Financial Fragility and Sovereign Default Risk
Government debt and economic growth
The safety of government debt
Politicians' coherence and government debt
Ideological polarization and government debt
The economic consequences of rising US government debt: privileges at risk