The Role of Foreign Currency Debt in Public Debt Management

Author(s):  
Huw Pill ◽  
Gian Maria Milesi-Ferretti ◽  
Patrick de Fontenay
2007 ◽  
Vol 10 (05) ◽  
pp. 763-770
Author(s):  
SILVIA CECCACCI ◽  
ALESSANDRO MARCHESIANI ◽  
LORENZO PECCHI

Foreign-currency denominated securities are introduced in a stochastic model à la Missale [13]. It is shown that the percentage share of this bond type, as compared to total debt, is an increasing function of the covariance between the output and the rate of depreciation, but it may or may not be a decreasing function of the volatility of the rate of depreciation.


Author(s):  
Valentyna Makogon

Relevance of research topic. In the context of institutional reforms, the issue of the limited state financial resources for the implementation of the tasks and functions entrusted to them by state authorities and local self-government is being updated, which predetermines the development of a system of public debt management, which is a powerful instrument of macroeconomic policy. At the same time, the growth of the level of public debt in both developed and transformational economies is conditioned by a number of factors, the most important of which are: the formation of a budget deficit that is of a permanent nature; the need for public expenditures aimed at ensuring macroeconomic stability and accelerating the pace of economic growth, the development of the social sphere. Formulation of the problem. In the context of institutional reforms, the important task is to develop a debt strategy that will ensure the concentration of limited investment resources in those sectors of the economy that will accelerate the pace of economic growth, which requires further scientific research of the theoretical and applied aspects of the formation and implementation of budgetary and debt policies, their coherence, improvement the mechanism of public debt management. At the same time, the choice of tools for managing public debt can both negatively and positively affect macroeconomic stability in the country. Analysis of recent research and publications. The problem of public debt management is rather widespread in scientific research. These are works by well-known domestic and foreign scholars: J. Buchanan, U. Mitchell, J. M. Keynes, T. Bogolib, I. Zapatrina, L. Lisyak, I. Chugunov and others. Identification of unexplored parts of the general problem. The above issues are actualized in connection with the intensification of globalization processes, the adverse external and internal economic environment, which requires the solution of a number of specific tasks related to the formation of public debt at an economically sound level. Setting the task, the purpose of the study. The objectives of the study are: to reveal the role of the system of public debt management in the regulation of socio-economic processes, to justify the relationship between debt and budget policy; carry out an analysis and assessment of Ukraine's state debt; to identify the main factors influencing the level of public debt; to clarify the provision for improving the efficiency of the mechanism of public debt management. The purpose of the study is to substantiate the priority tasks of debt policy in the context of institutional transformations. Method or methodology of conducting research. The article uses a set of methods of scientific research: system approach, statistical analysis, structuring, analysis, synthesis, and others. Presentation of the main material (results of work). The role of public debt in state regulation of social and economic development of the country is determined. The analysis and evaluation of public debt has been carried out. The priority tasks of the debt policy in the context of institutional transformations are substantiated. The field of application of results. The results of this study can be applied in the process of formation and implementation of Ukraine's debt policy, reforming the system of public finances. Conclusions according to the article. Ensuring macroeconomic stability in the country involves the development of an effective strategy for managing the public debt, justifying the strategic priorities of debt policy, based on realistic forecast indicators of the country's economic development. The improvement of the mechanism for managing public debt should be based on a clear combination of legally defined budgetary and debt policy instruments. The use of indicators of a structured, cyclically-adjusted balance can increase the validity of fiscal and debt policies. The high level of government debt and significant budget deficits create risks for financial and macroeconomic stability, their potential negative impact on economic development is far more devastating than the pro-cyclical nature of fiscal policies that only affect the economic dynamics in the short term. Accordingly, the important task of fiscal policy is to prevent the growth of public debt and budget deficit while limiting the negative impact of further fiscal consolidation on aggregate demand. The article defines the strategic priorities of debt policy in the context of institutional transformations.


2019 ◽  
Vol 15 (3) ◽  
pp. 72-83
Author(s):  
Christian Ugwueze Amu ◽  
Nathaniel Chinedum Nwezeaku ◽  
Linus Ezewunwa Akujuobi ◽  
Benedict Anayo Ozurunba ◽  
Sharon Nanyongo Njie ◽  
...  

While scholars like Wogu and Misra unanimously affirmed the beneficial roles of adopting AI powered ICT systems in various sectors of government and endeavours, most countries in OECD and the Commonwealth - for reasons described as ‘a political reckless attitude' - have shied away from fully adopting and implementing intelligent debt management systems for their country's financial sectors, hence, the looming debt crisis hanging over them. Premised on the Public Choice theory, the study adopts Marilyn's Ex-post facto research design and Creswell's mix-method research approaches to interrogate the arguments proffered for and against the public debt management and the benefits of ICT, with a view to identifying the nexus that exists between the politics of debt management crisis and the role of ICT for 21st-century polities. The article identified a high degree of political rascality amongst political elites and a lackadaisical will towards the full implementation of intelligent debt management systems in the countries with looming debt crisis. Viable recommendations were proffered.


2021 ◽  
Vol 34 (04) ◽  
pp. 1381-1387
Author(s):  
Elena Konstantinovna Voronkova ◽  
Elena Ivanovna Gromova ◽  
Rustam Anvarov ◽  
Igor Talievich Keri ◽  
Sergey Yuryevich Popkov

The article examines the content of public debt policy as an object of economic security in terms of methodological and practical aspects based on the assessment of debt sustainability using a system of indicators. The authors raise the issue of the need to develop a public debt management mechanism, to search for new strategies and tools, including by strengthening the functional role of international financial institutions.


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