economy is depressed because some agents are deleveraging, fiscal policy is more powerful and the multiplier can be quite big …

We propose an integrated treatment of the problems of optimal monetary and fiscal policy, for an economy in which …

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 …