Government Debt Management
Lead Research Organisation:
London Business School
Department Name: Economics
Abstract
Abstracts are not currently available in GtR for all funded research. This is normally because the abstract was not required at the time of proposal submission, but may be because it included sensitive information such as personal details.
Organisations
People |
ORCID iD |
| Andrew Scott (Principal Investigator) |
Publications
Joyce M
(2012)
Quantitative Easing and Unconventional Monetary Policy - an Introduction
in The Economic Journal
Faraglia E
(2013)
The Impact of Debt Levels and Debt Maturity on Inflation
in The Economic Journal
Faraglia, E
(2019)
Government Debt Management - The Long and the Short of It
in Review of Economic Studies
| Description | Aside from contributions to the academic literature around techinical modelling issues the main thrust of the research was to understand principles to guide government debt managers in the use of short and long term debt. The academic literature and policy focus has a strong preference for issuing long term debt. This has been the case even more since the 2007-8 financial crisis and more recently Covid-19. Our research argues that long term debt has advantages but these can be exaggerated. We articulate the advantages and reasons for issuing both short and long term debt. In simple terms short term debt helps smooth public finances across time and long term debt helps smooth public finances in response to shocks. Both are necessary and especially given empirical features of the bond market and yield curves. |
| Exploitation Route | The techniques could be extended to consider a richer maturity structure of bonds other than short, medium and long. |
| Sectors | Other |
| Description | Visit to UK Debt Management Office and Mark Deacon and team |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | I met with the Research team at the UK Debt Management Office to discuss our research |
| Year(s) Of Engagement Activity | 2017 |