The CGFS report discusses the interactions of sovereign debt management with monetary conditions and financial stability in these historically unusual circumstances. The report concludes that in certain circumstances, there is benefit in debt managers taking a broad view of cost and risk.
Central banks can likewise benefit from keeping abreast of SDM activities. Recent experience confirms that medium-term strategic outcomes for the maturity structure and risk characteristics of outstanding debt do matter, for financial stability in particular. This underscores the importance of close communication among the relevant agencies, yet with each agency maintaining independence and accountability for its respective role, consistent with internationally agreed principles for sovereign debt management.
© BIS - Bank for International Settlements
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