La dette publique Financement non mon taire du d ficit Titres n gociables et march secondaire

1. La dette publique* Financement non monétaire du déficit* Titres négociables et marché secondaire

8. Targeted saving incentives in industrial countries 401 (k) Plan A type of defined contribution pension plan covered in Section 401 (k) of the Internai Revenue Code of a the United States of America. This plan allows a employees to contribute pretax dollars to a qualified tax-deferred retirement plan. Employers usually match some of their employees' contributions to the plan to encourage employees' participation. Employees like this plan because they can defer income tax liability on the contributed income and their savings grow tax free until retirement. Employers like this plan because it limits the company's pension liability and shifts the responsibility of investment performance from the company's pension plan to employees. Individual Retirement Account (IRA) A tax-deferred, long-term saving program in the United States. Individuals could make tax-deductible contributions to IRAs limited to $2,000 per year. Filers witl1 income above $40.000 (single) and $60,000 (joint) cannot make tax deductible contributions, but still could make nondeductible contributions to gain the benefit of tax deferral. Withdrawals from IRAs prior to age 59 and 1/2 are subject to a 10 percent (of principal) tax penalty. PEP . The tax-exempt individual savings plan (plan d'épargne populaire) offered since 1990 by banks and insurance companies in France. The duration of a PEP should be longer than eight years to be eligible for the tax exemption. At the end of a PEP, the subscriber can choose either the use of the tax-free lump sum capital or the payment of an annuity exempted from any income tax. Personal Equity Plans (PEPs) A policy measure introduced in 1986 to encourage wider share ownership in the United Kingdom. Investors in PEPs are exempt from income tax on dividends arising from stocks held in a plan. in addition, there is no capital gains tax when stocks are sold. ln January 1992, PEPs were split into two subplans the "single-company PEP" and the general PEP."

9. RRSP/RPP The Canadian tax-deferred retirement savings program. Registered pension plans (RPPs) are occupational pension plans where contributions are deductible, income accrues tax free, and pension income is taxed when it is received. Registered retirement savings plans (RRSPs) are individual accounts similar to IRAs in the United States. The two systems have been implemented as an integrated system in terms of contribution limits. The RRSP is a more flexible system in which investors have great discretion over the types of assers they choose to hold and the methods of cashing out the funds. RRSP investors may either withdraw aIl of the funds at any point and include them in taxable income that year or purchase an annuity prior to their 71st birthday. Vermoegensbildungsgesetz . (Wealth Accumulation Program) A German saving program introduced in 1961 in an attempt to partially equalize wealth distribution. Employees authorize the deduction of a certain amount of their salary, which is directly deposited into long-term (at least six-year) funds. Both the employer and the employee can make contributions. If the employee's income falls short of a certain limit, the government supplements the contributions at a fixed percentage until an upper limit is reached. Funds eligible for a subsidy include shares in the employee's own or any other company and savings at building societies.

10. Liquidity of US 10 years Treasury Note

14. Bond Reopening Systems in 6-10 Countries When and how are securities reopened? Canada : There are 2 types of reopening: 1) to build up new issues via regular reopenings, and 2) to keep the integrity of the market. .Regarding 1), a new issue is built up by several reopenings, following a regular pattern since 1992 for each maturity, e.g., 2-year bonds are reopened once, 5- and 10-year bonds are reopened 3 times, and, since 1998, 30-year bonds are reopened 3 times. Regarding 2), when market integrity is challenged by market manipulation, the Treasury reserves the right to reopen. However, the Treasury considers this a drastic measure and bas never reopened an issue outside its regular schedule. The reasons the government does go, instead of holding a large initial auction are: 1) an consensus bas been reached between bond market participants and the authorities on the maximum sile for an auction that dealers can bear, 2) the financing requirements of the government during any period tend not to exceed the sile of the reopening, and 3) one is fiable to « freshen up » issues by adding some bonds to actively trading market participants, who are contrary to the buy-and-hold market participants who tend to take the bond out of circulation. ltaly :There are 3 types of reopening: 1) to build up new issues via regular reopenings, 2) to provide specialists with an additional supply of bonds in "reserved reopenings," and 3) to maintain market integrity. Regarding 1) a new issue is built up by several reopenings, following a regular pattern for each maturity, e.g. 10-year bonds are reopened around 8 times. Regarding 2) "reserved reopening" takes place in the aftemoon of the auction day, where 10% of the principal auction's amount is offered to the specialists at the price ., determined in the principal auction. The submission deadline for "reserved auction" \ is 17:00. i Regarding 3) when market integrity is challenged by, for example, an attempt to , manipula to the market, such as a short squeeze, the Treasury is prepared to provide the market with an additional supply of any security by reopening the issue. United Kingdom :There are 2 types of reopening: 1) to build up new issues at 5,10,20, and 30 years, and 2) to maintain market integrity. Regarding 1) a new issue is built up by several reopenings, following a normal timetable. Regarding 2) when market integrity is challenged by, for example, an attempt to manipulate the market, such as a short squeeze, the government is prepared to provide the market with an additional supply of any security by reopening the issue.

15. Bond Reopening Systems in G-10 Countries securities reopened? There are 2 types of reopenings : 1) to create benchmarks in the 3- to 6-month range, and 2) to keep market integrity. Regarding 1) benchmarks for 3- and 6-month range are created by reopening existing 1-year T-bills. One-year bills are issued every 4 weeks and both 3- and 6-month bills are issued weekly; therefore, 1 in 4 6-month éills is a reopened 1-year bill, and at13-month bills are reopened 6-month bills. Regarding 2) when market integrity is challenged by, for example, an attempt to manipulate the market, such as a short squeeze, the Treasury is prepared to provide the market with an additional supply of any securiry by reopening the issue. There are 2 types of reopening: 1) to build up new issues via regular reopenings, and 2) to maintain market integrity. Regarding 1) a new issue is built up by several reopenings, not by a single auction. A reopening is conducted at the market's request during regular meetings with primary dealers. However, no special roles for reopenings exist. The decision to issue new tranches on existing lines or to reopen a line is published on information vendor screens 1 week before the auction takes place. Regarding 2) when market integrity is challenged by attempt to manipulate the market, the Treasury reserves the right to reopen. There is 1 type of reopening: to build up new issues via regular reopenings. The reopening is almost systematically used as the Treasury favors successive securities sales that are parts of a single issue in order to build up sufficiently large securities reserves. Rules for reopening are: There are Obligations assimilables du Trésor (OATs, or fungible Treasury bond) issues every month. Each year, the Treasury issues only 1 or 2 new 10-year bonds perceived as bench- mark issues. Hence, reopening occurs between 6 and 12 times per year. Bons du Trésor à taux fixe et à intérêts annuels (BTANs notes) are issued every month. Every 6 months, the Treasury normally creates lUne of 2-year BTANs and one Une of 5-year BTANs. Therefore, subsequent monthly issues are attached to these Unes. The fuie for Bons du Trésor Bons du Trésor à taux fixe, et à intérêts precomptes (BTFs) is a bit more complex. Like OATs and BTANs, BTFs are fungible securities, but with an initial maturity of up to 1 year. At its weekly auction, the Treasury systematically issues 1 13-week BTF and, altemately, 1 6-month BTF and 1 12-month BTE The original maturities may be adjusted to attach BTFs to existing Unes (i.e., reopening the Unes). There can be short-dated BTFs with maturities of 4 to 6 weeks, half-yearly BTF issues with maturities of 24 to 29 weeks, and annual BTF issues with maturities of 42 to 52 weeks. Reopenings are not conducted to prevent market manipulation.