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
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: Suggested Citation