We examine UK debt management using a new monthly dataset on the quantity and market price of every individual bond issued by the government since 1694. Our bond-by-bond dataset identifies variations in the market value of debt and so captures investors' one-period holding returns, which is the cost of debt management in the government's intertemporal budget constraint. We find a substantial cost advantage in favor of issuing short bonds, even when considering some of the operational risks implied by cash flows and gross redemptions.
Ellison, Martin, and Andrew Scott.
"Managing the UK National Debt 1694–2018."
American Economic Journal: Macroeconomics,
International Lending and Debt Problems
International Financial Markets
National Debt; Debt Management; Sovereign Debt
Economic History: Financial Markets and Institutions: Europe: Pre-1913
Economic History: Financial Markets and Institutions: Europe: 1913-
Economic History: Government, War, Law, International Relations, and Regulation: Europe: Pre-1913
Economic History: Government, War, Law, International Relations, and Regulation: Europe: 1913-