Government spending at the zero lower bound (ZLB) is not necessarily welfare enhancing, even when its output multiplier …

Government spending at the zero lower bound (ZLB) is not necessarily welfare enhancing, even when its output multiplier …

We investigate the size of the multiplier at the ZLB in a New keynesian model. It ranges from around -0.25 to +1 …

economy is at the effective lower bound (ELB) or in normal times does not seem to matter for the size of the multiplier … average multiplier is about 1 in normal times and between 1.6 and 2.8 at the ELB, depending on the specification. The … difference between the two multipliers is distributed largely away from zero. More generally, the multiplier is inversely …

multiplier is 1.5 in the ZLB period, and 0.6 outside of it. We argue that these results are not driven by the amount of slack in …