Debt management when monetary and fiscal policies clash: some empirical evidence
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F20%3A10237878" target="_blank" >RIV/61989100:27510/20:10237878 - isvavai.cz</a>
Result on the web
<a href="https://www.tandfonline.com/doi/full/10.1080/15140326.2020.1750120" target="_blank" >https://www.tandfonline.com/doi/full/10.1080/15140326.2020.1750120</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1080/15140326.2020.1750120" target="_blank" >10.1080/15140326.2020.1750120</a>
Alternative languages
Result language
angličtina
Original language name
Debt management when monetary and fiscal policies clash: some empirical evidence
Original language description
We explore the effects of fiscal and monetary policy shocks on key debt management variables and provide empirical evidence supporting the notion of a strict separation of economic policy from the debt management agenda. We find that a tighter monetary policy coupled with fiscal expansion increases the risk that government debt will have to be rolled over at unusually high cost. This is especially the case in a downturn, where low or even negative interest rates often provide incentives for debt managers to invest predominantly in short-term bonds. Our findings echo the post-crisis environment of low or even negative interest rates, where many debt managers altered their portfolios' structure in favor of short-term bonds. In this respect, we argue that debt managers should use a longer optimization horizon and base their strategy on the medium- and long-term economic outlook.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
<a href="/en/project/GA16-22540S" target="_blank" >GA16-22540S: "Eye for eye?" Restoring Fiscal and Financial Stability without Jeopardizing Monetary Stability</a><br>
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Applied Economics
ISSN
1514-0326
e-ISSN
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Volume of the periodical
23
Issue of the periodical within the volume
1
Country of publishing house
GB - UNITED KINGDOM
Number of pages
29
Pages from-to
253-280
UT code for WoS article
000527213000001
EID of the result in the Scopus database
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