Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
How Government Bond Auctions Create Hidden Winners and Losers
In this episode of The Fiscal Policy Podcast, Lucas and Luna investigate how the U.S. Treasury's bond auction mechanism quietly redistributes wealth. They trace the history of the auction format, from the sealed-bid era to today's uniform-price system, and explain why a 2014 rule change—allowing non-competitive bidders to submit orders up to $10 million—shifted the playing field. The hosts break down the role of primary dealers, the 'winner's curse' in competitive bidding, and why the average taxpayer ends up paying a few basis points more in interest than necessary…
The skinny
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