countries, (ii) the fiscal multiplier is relatively large in economies operating under predetermined exchange rates but is zero …

We measure the size of the fiscal multiplier using a heterogeneous-agent model with incomplete markets, capital and …We find that market incompleteness is key to determining the size of the fiscal multiplier, which is uniquely … determined in our model for any combination of fiscal and monetary policies of interest. The multiplier is 1.34 if deficit …

The fiscal "multiplier" measures how many additional dollars of output are gained or lost for each dollar of fiscal … stimulus or contraction. In practice, the multiplier at any point in time depends on the monetary policy response and existing …, we show how to quantify the importance of these monetary-fiscal interactions. In the data, the fiscal multiplier varies …

) Globally, fiscal policy helped offset about 8% of the downturn in COVID, with a low 'traditional' fiscal multiplier. Yet it …

substitution effects, yielding uniform comparisons across models. By constraining the multiplier to tight ranges, model and prior …