Pages

What is the best structure for the holding of public debts?

- "Public debts of OECD countries can be held by:
• central banks;
• other non-resident institutional investors, non-resident banks or funds;
• domestic investors: institutional investors, funds, households, banks."
- "We seek to ascertain (by looking at the situations of the United States, the United Kingdom, Germany, France, Spain, Italy, the Netherlands and Japan) which of these possible public debt holding structures is the most stabilising, where by stability is meant a low variability of long-term interest rates on government bonds. We see in particular that:
• the holding by non-residents is not destabilising;
• the holding by domestic banks is stabilising."

Natixis Flash Economics 406 20100824

No comments:

Post a Comment