Staff Report 268

On the Irrelevance of the Maturity Structure of Government Debt Without Commitment

Christopher Phelan | Consultant

Revised January 1, 2001

This paper presents a government debt game with the property that if the timing of debt auctions within a period is sufficiently unfettered, the set of equilibrium outcome paths of real economic variables given the government has access to a rich debt structure is identical to the set of equilibrium outcome paths given the government can issue only one-period debt.

Published In: Games and Economic Behavior (Vol. 46, Issue 1, January 2004, pp. 115-128)

Download Paper (pdf)