The role of debt management I have noted that the package of macroeconomic policies advocated during the 1960s tended to include debt management policy along with fiscal and monetary policies. Certainly, central bankers of the day regarded debt management policy as an integral part of macroeconomic policy. The Porter Report had some sympathy with this notion. There were three discernible lines of thinking here.
First, monetary policy is itself a kind of debt management with an open market operation switching one public sector liability (central bank deposits) for another (e.g. treasury bills). Second, changes in relative supplies of debt could affect the liquidity of the banks and hence their willingness to lend. Third, debt management might directly alter the term structure of interest rates.