Authors:

  • Robin Greenwood
  • Samuel Hanson

Excerpt

A Comparative-Advantage Approach to Government Debt Maturity. Robin Greenwood, Samuel G. Hanson, May 2014, Paper. "We study optimal government debt maturity in a model where investors derive monetary services from holding riskless short-term securities. In a setting where the government is the only issuer of such riskless paper, it trades off the monetary premium associated with short-term debt against the refinancing risk implied by the need to roll over its debt more often. We then extend the model to allow private financial intermediaries..." Link verified June 19, 2014