A Comparative-Advantage Approach to Government Debt Maturity

摘要: We study optimal government debt maturity in a model where investors derive monetary services from holding riskless short-term securities. In simple setting the is only issuer of such paper, it trades off premium associated with against refinancing risk implied by need to roll over its more often. then extend allow private financial intermediaries compete provision money-like claims. argue that if there are negative externalities money creation, should tilt issuance towards short maturities. The idea may have comparative advantage relative sector bearing risk, and hence aim partially crowd out sector’s use debt.