00000nam 2200000zi 4500 9.905809 CaOODSP 20221107180935 m o d f cr |n||||||||| 211209t20212021onc ob f|0| 0 eng d CaOODSP eng rda CaOODSP n-cn--- FB3-5/2021-58E-PDF Corhay, Alexandre, author. Discount rates, debt maturity and the fiscal theory / by Alexandre Corhay, Thilo Kind, Howard Kung and Gonzalo Morales. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2021. ©2021 1 online resource (iii, 59 pages). text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2021-58 "Last updated: November 26, 2021." Includes bibliographical references (pages 45-49). "This paper examines how the transmission of government portfolio risk arising from maturity operations depends on the stance of monetary/fiscal policy. Accounting for risk premia in the fiscal theory allows the government portfolio to affect the expected inflation, even in a frictionless economy. The effects of maturity rebalancing on expected inflation in the fiscal theory directly depend on the conditional nominal term premium, giving rise to an optimal debt maturity policy that is state dependent. In a calibrated macro-finance model, we demonstrate that maturity operations have sizable effects on expected inflation and output through our novel risk transmission mechanism"--Abstract. Fiscal policy. Debts, Public. Politique fiscale. Dettes publiques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2021-58. (CaOODSP)9.806221 PDF 817 KB https://publications.gc.ca/collections/collection_2021/banque-bank-canada/FB3-5-2021-58-eng.pdf