A Ramsey planner chooses a distorting tax on labor and manages a portfolio of securities in
an economy with incomplete markets. We develop a method that uses second order …

The Fiscal Theory of the Price Level Page 1 Page 2 The Fiscal Theory of the Price Level john h.
cochrane princeton university press princeton and oxford Page 3 Copyright c 2023 by …

We obtain a recursive formulation for a general class of optimization problems with forward‐
looking constraints which often arise in economic dynamic models, for example, in …

This paper studies the maturity composition and the term structure of interest rate spreads of
government debt in emerging markets. In the data, when interest rate spreads rise, debt …

We study optimal government debt maturity in a model where investors derive monetary
services from holding riskless short‐term securities. In a setting where the government is the …

This paper studies US banks' exposure to interest rate and credit risk. We exploit the factor
structure in interest rates to represent many bank positions in terms of simple factor …

This paper uses a sequence of government budget constraints to motivate estimates of
returns on the US Federal government debt. Our estimates differ conceptually and …

We document that governments whose local currency debt provides them with greater
hedging benefits actually borrow more in foreign currency. We introduce two features into a …

In the past three decades, governments in emerging markets have accumulated large
amounts of international reserves, especially those with fixed exchange rates. This article …

For many households borrowing is possible only by accepting a financial contract that
specifies a fixed repayment stream. However, the future income that will repay this debt is …