Central government debt serves an important purpose in the public economy in a number of ways. While it is difficult to discuss an optimal size for the debt, both a level far too low and high can pose challenges.
For debt management, there are many reasons to analyse the conditions in the long term. For example, because major changes sometimes do not become visible until further ahead in time, but also to see what types of strategy choices can follow from these changes. This commentary therefore considers three scenarios for the progression and management of the debt until 2034, given the current fiscal policy framework and the Debt Office’s guidelines and strategy.
Read the commentary in full here
A Debt Office Commentary is part of a series of essays in which Swedish National Debt Office employees contribute to furthering the understanding of a relevant subject. Debt Office Commentary 3 2023 highlights that the challenge for central government debt management in the coming years will...
