Theoretical Approaches to Government Debt Management and Maturity Structure

Interest in fiscal policy theories has increased with the permanent budget deficits prevailed in many countries. Similarly, the consequences of using public debt in financing budget deficits also have an important area in the economic literature and within this framework, over the last few years optimal fiscal policy models which include theories of debt management frequently taking place in the literature. The maturity structure of public debt is the one of the most important variables from the view of debt management. In almost all financial crises, including the 2007-2008 Global Financial Crisis, the debt-to-maturity structure has become a key variable and the necessity of maturity structure to be included in more frequently in the analysis of debt sustainability has arisen. In this study, a classification of the theoretical approaches that deal with importance of the maturity structure of public debt in terms of fiscal and monetary policy has been put forward. In addition, empirical studies based on the aforementioned approaches have been included. It is thought that the study will contribute to similar studies related to public debt management and optimal maturity structure