The Conduct of Monetary Policy with a Shrinking Stock of Government Debt
分析政府债务存量下降对中央银行的影响，指出债务过少可能使经济处于铸币税拉弗曲线的帕累托低效侧，导致不必要的高通胀；若同时存在基本预算赤字，均衡可能不存在。贴现窗口贷款是公开市场操作的潜在理想替代方案。
This article considers the consequences for a central bank of a declining stock of government debt. The model has a treasury that taxes, spends, and issues debt; a central bank that conducts open market operations in treasury debt; and banks that intermediate private savings. It suggests that a sufficiently small stock of debt can put an economy on the Pareto inferior side of the seigniorage Laffer curve, implying unnecessarily high inflation. If there is also a primary budget deficit, equilibrium might not exist. Discount-window lending is a potentially desirable alternative to open market operations, especially if the loans are not subsidized.