Faraglia, Elisa; Marcet, Albert; Oikonomou, Rigas; … - Barcelona Graduate School of Economics (Barcelona GSE) - 2014
Our aim is to provide insights into some basic facts of US government debt management by introducing simple financial … highly correlated with total debt. A well known literature argues that optimal debt management should behave very differently … entire stock of previously issued long bonds each year, which is very far from observed debt management. We document how the …