Fiscal Hedging and the Yield Curve

We identify a novel, fiscal hedging motive that helps to explain why governments issue more expensive, long-term debt. We analyze optimal fiscal policy in an economy with distortionary labor income taxes, nominal rigidities and nominal debt of various maturities. The government in our model can smooth labor tax rates by changing the real return it pays on its outstanding liabilities. These changes require state contingent inflation or adjustments in the nominal term structure. In the presence of nominal pricing rigidities and a cash in advance constraint, these changes are themselves distortionary. We show that long term nominal debt can help a government hedge fiscal shocks by spreading out and delaying the distortions associated with increases in nominal interest rates over the maturity of the outstanding long-term debt. After a positive spending shock, the government raises the yield curve and steepens it.

More than a touristic visit: scholar exchanges as a communication method in public diplomacy

This paper discusses the concept of Public Diplomacy and the effectiveness of a specific Public Diplomacy tool: Scholar Exchanges as a tool of Public Diplomacy. The foreign Fulbright Program of the United States Government is introduced as a case study and for further interpreting the perceptions of the program, a survey is ran among 59 current grantees. Scholar exchanges programs are suggested to be implemented in order to overcome the barriers in communication processes in the international arena

Tevfik Fikret ve gençlik

Taha Toros Arşivi, Dosya No: 98/A-Tevfik Fikretİstanbul Kalkınma Ajansı (TR10/14/YEN/0033) İstanbul Development Agency (TR10/14/YEN/0033

Ölümünün 30 uncu yıldönümünde:Abdülhak Hamit Tarhan'dan hatıralar

Taha Toros Arşivi, Dosya No: 56-Abdülhak Hamit Tarhanİstanbul Kalkınma Ajansı (TR10/14/YEN/0033) İstanbul Development Agency (TR10/14/YEN/0033

Fiscal Hedging with Nominal Assets

We analyze optimal fiscal and monetary policy in an economy with distortionary labor income taxes, nominal rigidities and nominal debt of various maturities. Optimal policy prescribes the exclusive use of long term debt. Such debt mitigates the distortions associated with hedging fiscal shocks by allowing the government to allocate them efficiently across states and periods.

Tevfik Fikret ve gençlik

Taha Toros Arşivi, Dosya No: 98/A-Tevfik Fikretİstanbul Kalkınma Ajansı (TR10/14/YEN/0033) İstanbul Development Agency (TR10/14/YEN/0033