Kocherlakota, Narayana Rao - National Bureau of Economic Research - 2021
admit a bubble in public debt. In this context, I show that it is possible to stabilize either inflation or output in … debt bubble is large, it is impossible to stabilize either inflation or output by varying only interest rates (monetary … fiscal policy. I use an analytically tractable heterogeneous agent New Keynesian (HANK) model that is parameterized so as to …