Elenev, Vadim; Landvoigt, Tim; Shultz, Patrick J.; … - National Bureau of Economic Research - 2021
monetary policy play? We investigate debt sustainability in a New Keynesian model with an intermediary sector, realistic fiscal … and monetary policy, endogenous convenience yields, and substantial risk premia. When conventional monetary policy is … constrained by the ZLB during an economic crisis, increased government spending and lower tax revenue lead to a large rise in …