As government securities markets have grown during the last two decades, they have come to play an increasingly important role in both domestic monetary and fiscal policy and in the global capital markets. In many developed and developing nations, government securities have become the largest and most liquid segment of the debt market, and international participation in these markets has been increasing rapidly. The figures in Table 4.1 show the extent of the recent growth of government debt in both nominal dollars and relative to GDP. For the major industrial nations, for example, the ratio of government debt to GDP has risen from roughly 43 per cent in 1980 to approximately 68 per cent by the mid-1990s (IMF, 1994; p. 20).
- Monetary Policy
- Central Bank
- Secondary Market
- Government Debt
- Government Security
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I am grateful to the conference participants, particularly John Pitchford and Michael Woodford, for helpful comments.
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Kroszner, R.S. (1998). Global Government Securities Markets: Economics and Politics of Recent Market Microstructure Reforms. In: Calvo, G., King, M. (eds) The Debt Burden and its Consequences for Monetary Policy. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26077-5_4
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