 Debt and Cash ManagementMike Williams Chapter 31 in The International Handbook of Public Financial Management, 2013, pp 661-684 from Palgrave Macmillan Abstract: Abstract This chapter addresses the management of government’s debt and of its cash. Debt management is important because, since government income comes largely from taxation, the liability in effect falls on the country’s own citizens. Debt managers have to ensure not only that the government can borrow when it needs to but that its debt is managed in such a way that the country is not unduly exposed to risk, particularly from economic shocks. More fully, sovereign debt management has been defined as “the process of establishing and executing a strategy for managing the government’s debt in order to raise the required amount of funding, achieve its risk and cost objectives, and to meet any other sovereign debt management goals the government may have set, such as developing and maintaining an efficient market for government securities” (IMF and World Bank 2001). Cost usually means debt-servicing costs, and risk is the volatility of those costs, in particular for their potential to increase in the event of economic shocks; there is often a trade-off between them. Keywords: Monetary Policy; Cash Flow; Central Bank; Money Market; Asset Management (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-31530-4_32 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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