Government Asset and Liability Management in an Era of Vanishing Public Debt

August 2002
Journal of Money, Credit & Banking (Ohio State University Press);Aug2002 Part 2, Vol. 34 Issue 3, p887
Academic Journal
The paper examines alternative options for managing public debt and public assets in a government balance sheet framework that includes the Treasury, the Federal Reserve, and Social Security. Even after September 11, U.S. fiscal policy is on a trajectory to accumulate substantial "uncommitted funds." The paper examines how such funds should be invested. I conclude that high-quality fixed-income securities are the best benchmark and that Social Security is the most appropriate government asset manager. The analysis of policy alternatives reveals a trilemma between maintaining a liquid Treasury market, minimizing rent seeking, and facilitating inter-generational risk sharing.


Related Articles

  • Comment on GOVERNMENT ASSET AND LIABILITY MANAGEMENT IN AN ERA OF VANISHING PUBLIC DEBT. Gokhale, Jagadeesh // Journal of Money, Credit & Banking (Ohio State University Press);Aug2002 Part 2, Vol. 34 Issue 3, p934 

    The article presents commentary on the report "Government Asset and Liability Management in an Era of Vanishing Public Debt," by Henning Bohn, included within the issue. An overview of the report's conceptual basis is given and a review is provided of its three primary explorations into the...

  • Tax Reform in Plain English. Honest! Kinsley, Michael // Time;12/9/2002, Vol. 160 Issue 24, p58 

    Comments on the politics and outlook for tax reform in the United States. Topics of simplifying the tax code, tax subsidy, tax burden, and income tax statistics; View that one should be skeptical about tax incentives in free markets; Argument against incentives and for a tax rate of zero.

  • Long-run effects of fiscal policies on national income.  // OECD Economic Surveys: United States;May2004, Vol. 2004 Issue 7, p100 

    Discusses the effects of fiscal policies on the national income of the U.S. as of May 2004. Estimate of the U.S. Congressional Budget Office on the reduction of the average effective marginal tax rate on labor income; Prediction on the gross domestic product; Way of calculating the impact of...

  • Rep. Budget Reform. Miller, John J. // National Review;12/31/2005, Vol. 57 Issue 24, p24 

    The article reports that Representative Jeb Hensarling of Texas is promoting reforms to reign in federal spending in the United States. Since President George W. Bush has been in office, federal spending has grown by 33 percent. Conservatives can take some budget process reform measures to...

  • Time to Raise Taxes, America. Delong, Brad // U.S. News & World Report;Mar2009, Vol. 146 Issue 2, p17 

    The article presents discussion on U.S. economic policy as of 2009 and its need for reform. Arguments are offered asserting that taxes ought to be raised to address the imbalances in relation to gross domestic product caused by previously enacted large-scale deficit spending policies and...

  • Key House Committee Green-Lights Final Regulatory Reform Measures. Ackerman, Andrew // Bond Buyer;12/3/2009, Vol. 370 Issue 33227, p5 

    The article reports on the approval of final two pieces on the proposed financial regulatory system by the House of Financial Services Committee in the U.S. The committee has granted its permission on a package of legislation to reshape the financial policy, which targeted for the full House to...

  • The Untold Story Of a Gilded Era. Sharma, Ruchir // Newsweek (Pacific Edition);9/12/2005 (Pacific Edition), Vol. 146 Issue 11, p17 

    Presents the author's views on how fluctuations in the United States economy effect the world economy. Review of media reports stating that the United States is dealing with a massive trade and fiscal deficit, record low savings, increased oil prices and weakening real estate market; Author's...

  • Direct Any Tax Benefits Toward Businesses First. Roth III, William F. // Grand Rapids Business Journal;12/31/2001, Vol. 19 Issue 53, p20 

    Focuses on the politics involved in the tax stimulus package being debated in the U.S. Congress at the end of year 2001. Republican and Democratic versions of the economic recovery package; Purpose of the tax cut; Proposals of the Republican Party helping economically-affected businesses;...

  • How Katrina could save us from a fiscal fiasco. Colvin, Geoffrey // Fortune International (Europe);10/17/2005, Vol. 152 Issue 7, p29 

    Mentions how Hurricane Katrina could have a positive impact on the United States economy. Idea that states are asking for disaster relief and for funds to improve their emergency management systems; Need for fiscal reform and how Hurricane Katrina offers a convenient justification; Problem with...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics