ABSTRACT
Svensson [106]. The idea that a particular maturity structure of government debt may enforce second-best tax policy was first suggested in the seminal paper by Lucas and Stokey [92]. The results are interpreted in Persson and Svensson [104] and extended to a monetary economy by Persson, Persson and Svensson [10 1]. Rogers [113] suggests that the implied maturity structure is consistent with private investors following a particular portfolio strategy. Finally, Rogers [114] discusses how well a government can control its own future policy when it has access to fewer debt instruments than there are future policy variables.
