Consequences of debt policy in a stochastically growing monetary economy

• 成果类型: Article
• 署名作者: Grinols, EL; Turnovsky, SJ
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; University of Washington; University of Washington Seattle
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.2307/2527304
• 发表日期: 1998
• 页码: 495-521
• 关键词: term structure; interest-rates; fiscal-policy; yield curve; RISK; equilibrium; returns; MODEL

摘要

The effects of open-market operations and long-versus short-bond financing on risk in financial markets in a stochastically growing economy are studied. An increase in short bonds, resulting from exchanging long bonds, increases the riskiness of long bonds and raises their real rate of return. An open-market purchase of either long or short bonds raises the price of long bonds and lowers their risk and real return. However, debt policy adjustments that affect the real return to long bonds do not affect real investment or growth, so that overall the welfare consequences of debt policy are neutral.