Our current Indian debt of management

1. Sachiv Shekhar
Management of Public Debt
with fiscal & monetary policy

2.  Introduction
 Public debt
 Fiscal policy
 Monetary policy
 Conclusion

3.  There is growing census that public debt management should be
framework analysis , but today their literature that place into
coherent analytical framework.
 Existing the literature fiscal & monetary policies is well
established. However they have largely been developed in
isolation or where their interaction are examined such a sargent
wallce (1981 to 1993) the focus has been on the consequences of
uncoordinated policies.
 The literature on debt management , on other hand has developed
in support of fiscal & monetary policies.
 Example: Baro (1995) identified therole of debt of management in
tax smoothing or identified the role of debt management

4.  The public debt is defined as how much a country
owes to lenders outside of itself. These can include
individuals, businesses and even other
governments. The term "public debt" is often used
interchangeably with the term sovereign debt.
 Regardless of what it's called, public debt is the
accumulation of annual budget deficits It's the
result of years of government leaders spending
more than they take in via tax revenues. For more,
see How the Debt and Deficit Differ and Affect
Each Other

5.  Fiscal policy is the means by which a
government adjusts its spending levels and tax
rates to monitor and influence a nation's
economy. It is the sister strategy to
monetary policy through which a central bank
influences a nation's money supply.

6.  Monetary policy is process by which monetary
authority of a country , normally a central bank
controls the supply of money in the economy
by its control over interest rates in Oder to
maintain price stability and achieve high
economic growth.

7.  Debt management policy was sub ordinate fiscal
and monetary policy
 Clear implications for securing short term fiscal
space as well as the long term fiscal risk.
 For the conduct of monetary policy , it is viewed
as the management of the composition of assets
available to the public between money and
government paper.
 Decentralization debt management.

8.  The desirability of policy separation between
fiscal policy, monetary policy and debt
management. The asset and liability
management framework assist indentifying
and managing the macroeconomic risks of
uncoordinated policies.
 Debt manager without a separate policy goal
could lead to inconsistent policy mix.

9.  Debt management can buy time, but procrastination of policy
adjustment can be much more costly over the longer term than the
case where short-term fiscal expediency is not allowed to
dominate debt management. Thus, "crises are more frequent and
more severe when short-term borrowing and dollar denominated
external debt are high, and foreign direct investment and reserves
are low, in large part because balance sheets are then very
sensitive to increases in exchange rates and short-term interest
rates…If countries that are faced with a fall in capital inflows
adjusted more promptly, rather than stalling for time by running
down reserves or shifting to loans that are shorter-termed and
dollar-denominated, they might be able to adjust on more
attractive terms…It is precisely the decision to delay adjustment
that leaves crisis victims with few good options, because balance
sheets have deteriorated in the mean time”

10. THANKS