Jump to ContentJump to Main Navigation
The Economists' Voice 2.0The Financial Crisis, Health Care Reform, and More$
Users without a subscription are not able to see the full content.

Joseph Stiglitz and Aaron Edlin

Print publication date: 2014

Print ISBN-13: 9780231160155

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231160155.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 21 June 2021

Trills Instead of T-Bills

Trills Instead of T-Bills

It’s Time to Replace Part of Government Debt with Shares in GDP

Chapter:
(p.224) Chapter 29 Trills Instead of T-Bills
Source:
The Economists' Voice 2.0
Author(s):

Mark J. Kamstra

Robert J. Shiller

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231160155.003.0029

This chapter argues that, in parallel with the many other ongoing changes in the US financial structure, the obligations of the national government should take a new and innovative form. It proposes a small-denomination GDP share paying a coupon each year of one-trillionth of that year’s GDP, or about $14.60 at current levels. On this basis, it suggests the name “Trill” be used to refer to this new security. Similar to shares issued by corporations paying a fraction of corporate earnings in dividends, the Trill would pay a fraction of the “earnings” of the United States. Trills would have coupon payments that would rise in an expansion, be of value to investors, and, most importantly, for the U.S. government would decline in a recession with declining tax revenues, in contrast to existing debt vehicles.

Keywords:   government obligations, government debt, national government, Trills, GDP securities, coupon payments

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .