Financial Implications of the Shrinking Supply of U.S. Treasury Securities

52 Pages Posted: 11 Aug 2009

See all articles by Charles Kramer

Charles Kramer

International Monetary Fund (IMF) - Capital Markets and Financial Studies Research Department

Garry J. Schinasi

Independent Advisor, Global Financial Stability

T. Todd Smith

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: May 2001

Abstract

Recent improvements in fiscal positions in advanced countries have sharply curtailed the issuance of government securities and created the possibility that government securities could disappear in some countries. The possibility that this might occur in the United States has attracted the most attention, in large part because of the international role of the U.S. dollar and the widespread perception that U.S. treasury securities have the lowest total financial risk (the combination of credit, market, and liquidity risks) among U.S. dollar assets. This paper analyzes the unique features of government securities and links them to the important roles that government securities, in particular U.S. treasury securities, have come to play in national and international financial markets. The paper then identifies and examines financial market-oriented public policy questions raised by the shrinking supply of U.S. treasuries.

Keywords: Capital markets, United States, Public debt

Suggested Citation

Kramer, Charles F. and Schinasi, Garry J. and Smith, T. Todd, Financial Implications of the Shrinking Supply of U.S. Treasury Securities (May 2001). IMF Working Papers, Vol. , pp. 1-51, 2001. Available at SSRN: https://ssrn.com/abstract=1446184

Charles F. Kramer (Contact Author)

International Monetary Fund (IMF) - Capital Markets and Financial Studies Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6348 (Phone)
202-623-6339 (Fax)

Garry J. Schinasi

Independent Advisor, Global Financial Stability ( email )

Washington, 20008
+1-202-361-0958 (Phone)

T. Todd Smith

affiliation not provided to SSRN

No Address Available

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