TY  - JOUR
AU  - Missale, Alessandro
AU  - Giavazzi, Francesco
AU  - Benigno, Pierpaolo
TI  - Managing the Public Debt in Fiscal Stabilizations: The Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6311
PY  - 1997
Y2  - December 1997
DO  - 10.3386/w6311
UR  - http://www.nber.org/papers/w6311
L1  - http://www.nber.org/papers/w6311.pdf
N1  - Author contact info:
Alessandro Missale
Dip. di Economica Politica e Aziendale
Via Conservatorio 7
20122 Milano, Italy
E-Mail: alessandro.missale@unimi.it

Francesco Giavazzi
Universita' Bocconi and IGIER
Via Guglielmo Röntgen, 1
Milan 20136
ITALY
Tel: 0039-02-5836-3304
Fax: 0039-02-5836-3302
E-Mail: francesco.giavazzi@unibocconi.it

Pierpaolo Benigno
Dipartimento di Economia e Finanza
Luiss Guido Carli
Viale Romania 32
00197 Rome
ITALY
Tel: 39-0685225-552
E-Mail: pbenigno@luiss.it
AB  - This paper provides evidence on the behavior of public debt managers during fiscal" stabilizations in OECD countries over the last two decades.  We find that debt maturity tends to" lengthen the more credible the program, the lower the long-term interest rate and the higher the" volatility of short-term interest rates.  We show that this debt issuing strategy is consistent with" optimal debt management if information between the government and private investors is" asymmetric, as is usually the case at the outset of a stabilization attempt when private investors" may lack full confidence in the announced budget cuts.
ER  -