Bigio, Saki; Zhang, Mengbo; Zilberman, Eduardo - 2020
policy. For the same path of government debt, transfers are preferable when debt limits are tight, whereas credit policy is … preferable when they are slack. A credit policy has the advantage of targeting fiscal resources toward agents that matter most …' goods in a two-sector economy with incomplete markets. We compare the advantages of lump-sum transfers versus a credit …