Disjunctive is Not to Pay or Excise Debt, is to Pay it Extra Charge or at Just Price

Revista de Economia Institucional, Vol 2, December 2000

10 Pages Posted: 22 Nov 2003

See all articles by Mauricio Cabrera G.

Mauricio Cabrera G.

Independent Consultant

Jorge Iván González

Universidad Nacional de Colombia - Facultad de Ciencias Economicas

Abstract

The article shows that the disjunctive stated by Hernandez et. al. between pay or excise national public debt is not relevant. Discussion should focus on the current price that is paid for national public debt. Treasury is offering TES on the market at an interest rate much greater than DTF. This extra charge, besides is not justified, increases national debt. Current management of national public debt should be restated so that fiscal adjustment and economic recovery can be accomplished.

Note: The Downloadable document is in Spanish.

Keywords: fiscal deficit, public debt, monetary policy, interest rate

JEL Classification: E52, E58, H62, H63

Suggested Citation

Cabrera G., Mauricio and Gonzalez, Jorge Ivan, Disjunctive is Not to Pay or Excise Debt, is to Pay it Extra Charge or at Just Price. Revista de Economia Institucional, Vol 2, December 2000. Available at SSRN: https://ssrn.com/abstract=446660 or http://dx.doi.org/10.2139/ssrn.446660

Mauricio Cabrera G.

Independent Consultant

No Address Available

Jorge Ivan Gonzalez (Contact Author)

Universidad Nacional de Colombia - Facultad de Ciencias Economicas ( email )

Carrera 30 45-03
Bogota, None
Colombia

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