Managing Public Debt and its Financial Stability Implications

Abstract

This paper explores the relationship between the level and management of public debt and financial stability, and explains the channels through which the two are interlinked. It suggests that the broader implications of a debt management strategy and its implementation should be carefully analyzed by debt managers and policy makers in terms of their impact on the government''s balance sheet, macroeconomic developments, and the financial system.Financial stability;Debt strategy;Financial instruments;Risk management;Sovereign debt;debt management, public debt, debt managers, bonds, debt structure, domestic debt, bond, debt stock, financial institutions, financial system, government debt, debt structures, domestic currency, debt market, debt portfolio, rate bonds, financial market, stock of debt, debt restructuring, financial markets, debt management strategy, public debt management, financial market development, financial sector, domestic public debt, government bond, bond prices, bond markets, financial instability, bond market, domestic debt markets, debt manager, government bonds, bond yields, domestic debt market, financial intermediaries, financial assets, currency crises, short-term debt, local currency bond, interest rate risk, local currency bond markets, public sector debt, debt sustainability, debt default, debt management strategies, sovereign bonds, central bank, debt management policies, term bond, debt management practices, stock indexes, domestic bonds, debt ratios, old bonds, national debt, domestic government bond, bond portfolio, local debt, international financial markets, fixed rate bonds, nominal exchange rate, public bonds, government bond markets, commodity futures, debt management operations, nominal bonds, hedging, rate bond, government bond market, debt crises, liquid markets, debt database, domestic savings, debt defaults, debt management policy, debt holder, debt maturities, financial intermediation, external public debt, domestic financing, debt management authorities, debt management capacity, term bonds, debt management office, short-term bonds, debt strategies, central banks, equity capital, balance of payments, currency risks, debt exchanges, government bond yields, debt sustainability analysis