The Bubble that Never Came (and Other Misconceptions About Treasury Bonds)

2017 ◽  
Author(s):  
Michele mname Mazzoleni ◽  
Ashish mname Garg
Keyword(s):  

2020 ◽  
Vol 61 (2) ◽  
pp. 459-485
Author(s):  
Ralf Banken

AbstractIn addition to the well-known mefo bills and other types of state debts, National Socialist tax policy was also of great importance for the financing of armament before the war began. Nevertheless, the leaders of the Nazi regime could not agree on the general course of tax policy due to the already high tax burden since spring 1935. As the Reich Ministry of Finance was only able to push through a few small tax increases despite a stricter tax collection practice, the tax coverage of Reich expenditures sank further and further and the short-term national debt increased. This development led to a severe liquidity crisis of the Reich’s finances in 1938 due to the ever accelerating armament, which was overcome for the time being mainly by issuing short-term treasury bonds. This ad hoc solution became entrenched during the war due to those groups in the Nazi regime that continued to block tax policy and formed the basis for the silent financing of the war.







Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-13
Author(s):  
Mariya Gubareva ◽  
Ilias Chondrogiannis

We reexamine the relationship between credit spreads and interest rates from a capital gain perspective of bond portfolio. Capital gain sensitivity between US BBB-rated bonds and Treasury bonds is weak and positive in normal periods, but strong and negative during recessions. In the upward phase of business cycles, changes in interest rates are fully reflected in the bond yields, leaving spreads unchanged, while in the downward phase, rates and spreads move in opposite directions. This alternation between two distinct regimes reconciles a long-standing division in the literature. We then discuss the efficiency of shorting Treasury bonds as a hedging strategy and policy suggestions.



2016 ◽  
Vol 61 (05) ◽  
pp. 1671002
Author(s):  
JOERGEN OERSTROEM MOELLER

Global debt will keep growth subdued over the next decade. Falling work force will move labor intensive manufacturing out of China and into South Asia. Investment, not consumption, will be the main driver of growth, which primarily will take place in Asia and probably also Africa. New institutional frameworks such as AIIB emerge, but they will operate inside the existing global order. Falling albeit still tangible Chinese saving combined with fading interest for US treasury bonds will pose an awkward dilemma for US monetary policy. Under such circumstances current savings–investment balances will continue to rule the global economy.



2018 ◽  
Vol 56 (1) ◽  
pp. 157-184 ◽  
Author(s):  
Ali Hortaçsu ◽  
David McAdams

Abundant data has led to new opportunities for empirical auctions research in recent years, with much of the newest work on auctions of multiple objects, including: (1) auctions of ranked objects (such as sponsored search ads), (2) auctions of identical objects (such as Treasury bonds), and (3) auctions of dissimilar objects (such as FCC spectrum licenses). This paper surveys recent developments in the empirical analysis of such auctions. (JEL D44, H82)



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