More US debt raises rates. Longer-term debt lowers short-term risk.

The US government's choices about how it issues debt have different, measurable effects on the economy. Issuing more debt pushes up interest rates and slows down private investment, but issuing longer-term debt can lower short-term risk, which encourages some immediate business activity.

The US Treasury has managed the national debt for decades, but the specific economic effects of *how* it issues debt were less clear. This paper shows the Treasury's choices are not neutral. It means the government can now make more precise trade-offs when deciding between short-term economic stimulus and long-term borrowing costs.