A key issue in current research and policy is the size of fiscal multipliers when the economy is in recession. We …

study the effects of fiscal stimulus. Our small-open-economy empirical setting permits us to estimate key macroeconomic …

What are the economic effects of an interest rate cut when an economy is in the midst of a financial crisis? Under what … ffects? We answer these questions in a general class of open economy models, where a financial crisis is modeled as a time … the traded good sector and in adjusting the rate at which that output can be used in other parts of the economy, then a …