10 Pages Posted: 30 Apr 2011
Date Written: April 27, 2011
The self-imposed constraint requiring the U. S. Treasury to have a positive balance in its account prior to spending combined with the Federal Reserve's desire to achieve its federal funds rate target result in six transactions being necessary when the U. S. Federal Government runs a deficit. This paper explains these six transactions by combining the Social Fabric Matrix and Social Accounting Matrix methodologies.
Keywords: treasury debt operations, central bank operations, interest rate targets, budget deficits, social accounting matrix, social fabric matrix
JEL Classification: B41, E42, E44, E52, E62, H63
Suggested Citation: Suggested Citation
Fullwiler, Scott T., Treasury Debt Operations: An Analysis Integrating Social Fabric Matrix and Social Accounting Matrix Methodologies (April 27, 2011). Available at SSRN: https://ssrn.com/abstract=1825303 or http://dx.doi.org/10.2139/ssrn.1825303