By Topic

This Finance survey examines (a) Missing payments on the US Treasury security obligations for several weeks would pose a substantial risk of a global financial crisis; (b) The requirement to periodically increase the debt ceiling measurably reduces the long-run size of the debt 

This Finance survey examines (a) By issuing inflation-indexed bonds, and thereby providing a long-term real safe asset for pension funds and retirement savers, governments can make a substantial contribution to social welfare; (b) Issuance of inflation-indexed bonds substantially helps government commit to a responsible fiscal and monetary policy 

This Finance survey examines (a) The Federal Reserve has begun quantitative tightening (QT) to reduce the size of its balance sheet. Fed holdings of Treasury securities have declined by $800 billion relative to the March 2020 peak. The Fed currently holds $4.9 trillion of Treasury securities, significantly larger than the $2.5 trillion holdings prior to the Covid pandemic. A reduction in Fed holdings of Treasury securities measurably increases the interest rate on long-term U.S. Treasury bonds (b) A reduction in Fed holdings of Treasury securities measurably increases volatility in the Treasury market