Interactions Of Sovereign Debt Management With Monetary .pdf

cgfs42.pdf
Preview of Interactions of sovereign debt management with monetary ...
🔗 Source: bis.org
📊 Size: 281 KB
👤 Author: Committee on the Global Financial System
⬇️ Downloads: 339

Summary

The Committee on the Global Financial System (CGFS) established a Study Group to examine the impact of sovereign debt management choices on monetary conditions and financial stability. The report discusses interactions between sovereign debt management (SDM) and central bank functions under current circumstances, including the crisis's alteration of the environment in which debt managers and central banks operate. Debt managers aim to minimize the medium- to long-term expected cost of funding the government's activities, subject to prudent risk management. The report finds that SDM choices about maturity, indexation, and issuance could matter for central banks, and that in most countries, the effects of debt managers' recent choices on monetary and financial conditions do not seem to have been large or difficult to manage. However, in countries facing fiscal sustainability concerns and in some emerging market economies, legacy SDM choices have affected crisis dynamics and thus financial stability. The report concludes that SDM can reduce financial volatility by spreading maturity, avoiding concentrated placement, and developing stable and diversified investor bases.

Description

The Committee on the Global Financial System (CGFS) established a Study Group to examine the impact of sovereign debt management choices on monetary conditions...

Technical Information

  • File Format: PDF
  • File Size: 281 KB
  • Pages: 39
  • Language: EN
  • Author: Committee on the Global Financial System
  • Total Downloads: 339
  • Last Updated: 6 days ago

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