Kocherlakota, Narayana Rao - National Bureau of Economic Research - 2021
this kind, there exists a public debt bubble, so that the government is able to borrow at a real interest rate that is …This paper studies the public debt implications of a class of Aiyagari (1994)-Bewley (1977)-Huggett (1993) (ABH) models … perpetually below the economic growth rate. Given an equilibrium with a public debt bubble, the primary deficit and the level of …