The Real Effects of Universal Banking: Does Access to the Public Debt Market Matter?

2020 ◽  
Author(s):  
Stefano Colonnello
Keyword(s):  
Public Debt ◽  
Universal Banking ◽  
The Real ◽  
The Public ◽  
Real Effects ◽  
Debt Market

scholarly journals Uncertainty in the public debt market and stochastic long-run growth

2011 ◽  
Vol 28 (1-2) ◽  
pp. 67-73 ◽  
Author(s):  
Panagiotis Tsintzos ◽  
Theologos Dergiades
Keyword(s):  
Public Debt ◽  
The Public ◽  
Long Run ◽  
Debt Market

scholarly journals Inflating Away the Public Debt? An Empirical Assessment

2021 ◽  
Author(s):  
Jens Hilscher ◽  
Alon Raviv ◽  
Ricardo Reis
Keyword(s):  
Public Debt ◽  
New Method ◽  
Inflation Dynamics ◽  
The Real ◽  
The Public ◽  
Empirical Assessment ◽  
Short Run ◽  
Real Value ◽  
The Impact ◽  
The U.S

Abstract This paper proposes a new method for measuring the impact of inflation on the real value of public debt. The distribution of debt debasement is based on two inputs: the distribution of privately held nominal debt by maturity, for which we provide new estimates, and the distribution of risk-adjusted inflation dynamics, for which we provide a novel copula estimator using options data. We find that inflation by itself is unlikely to lower the U.S. fiscal burden significantly because debt is concentrated at short maturities and perceived inflation shocks have little short-run persistence and are small.

scholarly journals PUBLIC DEBT MARKET AND BUDGET DEFICIT FINANCING TOOLS

2020 ◽  
Vol 1 (19(47)) ◽  
pp. 80-85
Author(s):  
Mykhailo Hantsiak
Keyword(s):  
Financial Market ◽  
Public Debt ◽  
Budget Deficit ◽  
Credit Market ◽  
Government Debt ◽  
Securities Market ◽  
Financial Resources ◽  
The Public ◽  
Debt Market ◽  
The Government

The purpose of the study is to substantiate the need to determine the essence and place of the public debt market in the financial market. Achievement is ensured by the implementation of tasks: systematization of views of domestic and foreign scientists on the essence of the place of public debt in the classification system of financial market segments; study of the structure of the financial market in terms of segments that ensure the implementation of debt financing of public debts; development of a theoretical approach to the structure of the public debt market. The article considers and systematizes the views of scientists concerning the place of the state morgue market in the financial market. The article substantiates the need to supplement the classification features for financial market segmentation in terms of complementing the target of market participants and identifying segments: the market for attracting financial resources to cover the state budget deficit (public debt market); the market for attracting financial resources to increase private capital. The concept of the public debt market is defined and its structure is proposed in general and detailed form. In general, the structure of the public debt market covers the debt securities market and the external credit market. The government debt securities market is a segment of the securities market, which in turn can also be classified. The same can be said about the external segment of the credit market. However, if the government debt securities market is fully owned by the public debt market, then the external segment of the credit market is only partially owned. The detailed structure of the public debt market is also presented. Conclusions are drawn and the directions of further scientific research in this direction are indicated.

scholarly journals Can the Central Bank Alleviate Fiscal Burdens?

2019 ◽  
pp. 130-170
Author(s):  
Ricardo Reis
Keyword(s):  
Central Bank ◽  
Public Debt ◽  
Balance Sheet ◽  
Central Banks ◽  
Resource Constraint ◽  
Income Risk ◽  
The Real ◽  
The Public ◽  
The Government ◽  
The Impact

Central banks affect the resources available to fiscal authorities through the impact of their policies on the public debt, as well as through their income, their mix of assets, their liabilities, and their own solvency. This chapter inspects the ability of the central bank to alleviate the fiscal burden by influencing different terms in the government resource constraint. It discusses five channels: (i) how inflation can (and cannot) lower the real burden of the public debt, (ii) how seigniorage is generated and subject to what constraints, (iii) whether central bank liabilities should count as public debt, (iv) how central bank assets create income risk and whether or not this threatens its solvency, and (v) how the central bank balance sheet can be used for fiscal redistributions. Overall, it concludes that the scope for the central bank to lower the fiscal burden is limited.

Foreign Institutional Ownership and the Choice between Public and Private Debt

2019 ◽  
Vol 18 (2) ◽  
pp. 31-64 ◽  
Author(s):  
Jinshuai Hu ◽  
Albert Kwame Mensah ◽  
Albert Tsang
Keyword(s):  
Public Debt ◽  
Institutional Ownership ◽  
Vital Role ◽  
Cross Sectional ◽  
Private Debt ◽  
Public And Private ◽  
The Public ◽  
New Public ◽  
Accruals Quality ◽  
Debt Market

ABSTRACT The objective of this study is to examine the role of foreign institutional investors (FIIs) in firms' choice of debt. Using a large sample of firms from 40 countries, we find that FIIs are positively associated with the propensity of firms to access the public debt market and the subsequent issuance of new public debt. In contrast, we find no relationship between domestic institutional ownership and public debt. Our results are robust to various specifications, including a 2SLS regression model, a change model, a Heckman two-stage model and propensity score matching model, and a quasi-natural experiment using the exogenous relaxation of foreign equity restrictiveness. Cross-sectional tests further show that findings are stronger for firms with poorer accruals quality, with higher levels of information asymmetry, and firms domiciled in countries with weaker creditor protection. Collectively, our findings suggest that FIIs play a vital role in facilitating firms' public debt financing.

scholarly journals Budget and Tax Policy and the Public Debt Market in the First Half of 2020

Federalism ◽  
2020 ◽  
pp. 169-187
Author(s):  
I. S. Bukina
Keyword(s):  
Public Debt ◽  
Quantitative Easing ◽  
Monetary Policies ◽  
Government Bonds ◽  
The Public ◽  
Debt Burden ◽  
Russian Economy ◽  
Debt Market ◽  
Coronavirus Infection ◽  
Restrictive Measures

The pandemic of a new coronavirus infection for the Russian economy was a double shock: against the background of the spread of COVID-19, oil prices fell sharply. This was a serious shock for the economy and budget revenues. However, it was the budget expenditures that played a major role in supporting output. In addition, monetary policy was expansionary. Thus, in the first half of 2020, a combination of stimulating fiscal and expansionary monetary policies was observed. This combination increased the demand for government bonds. During the periods of the next decrease in the key rate of the Central Bank, an increase in the yield of OFZ was observed. Despite the fact that the level of Russia’s debt burden is low, there are specific risks that limit the possibilities for increasing debt. These include possible sanctions, a weakening of the ruble, falling incomes of the households and a high probability of an increase in bankruptcies of those organizations that will not be able to survive the consequences of the introduction of restrictive measures. Given these risks, it is necessary to consider mechanisms to support the economy using debt instruments and quantitative easing policies.

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