Financial Policy

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Authors registered in the RePEc Author Service: Dirk Niepelt

No 12755, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper reviews theoretical results on financial policy. We use basic accounting identities to illustrate relations between gross assets and liabilities, net debt positions and the appropriation of (primary) budget surplus funds. We then discuss Ramsey policies, answering the question how a committed government may use financial instruments to pursue its objectives. Finally, we discuss additional roles for financial policy that arise as a consequence of political frictions, in particular lack of commitment.

Keywords: Financial policy; Debt; Debt structure (search for similar items in EconPapers)
JEL-codes: E6 F3 H6 (search for similar items in EconPapers)
Date: 2018-02
New Economics Papers: this item is included in nep-mac
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Working Paper: Financial Policy (2018)
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