How is the Debt Managed? Learning from Fiscal Stabilizations*

摘要: This paper provides evidence on the behavior of public debt managers during fiscal stabilizations. Such episodes provide valuable information way instruments are chosen because they allow to overcome problem that policymakers' expectations interest rates generally not observable. We find governments increase share fixed-rate long-term denominated in domestic currency higher is conditional volatility short-term rates, lower and stronger fall follows announcement stabilization program. By contrast, conventional measures relative cost issuing debt, such as long-short interest-rate spread, significant. suggests tend prefer long short maturity concerned about risk refinancing at than expected rates. However, when high their expectations, issue minimize borrowing costs.