Berndt, Antje; Yeltekin, Sevin
Using the government's intertemporal budget constraint, we quantify the contribution of returns paid on the U.S. government's debt portfolio to the evolution of the debt-to-GDP ratio. We show that announcements of unconventional monetary policy measures by the Federal Reserve between 2008.IV and 2012, as a part of macroeconomic stabilization, were associated with a sizable increase in returns and debtto-GDP ratios and contributed to fiscal imbalances. We use the Federal Reserve's portfolio...[Show more]
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.