, our results indicate that higher government debt-to-GDP ratios have negatively affected long-term multipliers. …

, our results indicate that higher government debt-to-GDP ratios have negatively affected long-term multipliers. …

future debt stocks and demonstrate the variance reducing impact of feedback rules for primary deficits in a case study of oil …

In standard macroeconomic models, debt sustainability and price level determinacy are achieved when fiscal policy … avoids explosive debt and monetary policy controls inflation, irrespective of the relative strengths of each policy stance … risk. An increase in sovereign risk reduces lender's willingness to hold government debt and raises consumption and …

We analyze the interaction between bank rescues, financial fragility and sovereign debt discounts. We construct a model … debt obligations. We analyse the impact of a financial crisis, first under full government credibility and then with an … endogenous sovereign debt discount. The introduction of the default possibility does not have any impact IF all government debt …

We investigate the effectiveness of `Keynesian' fiscal stimuli when government deficits and debt rollovers are … loans are crowded out by government debt in the credit provision channel. This lowers investment and (future) capital stocks … cycle further lowe ring the fiscal multiplier. Longer maturity debt leads to larger capital losses and lower Keynesian …

are partially financed by public debt, unit labor costs fall in response to a fiscal expansion, such that inflation tends …

. As a solution to this problem, economists have proposed to impose a binding debt rule. In this paper we argue that a … binding debt rule does not eliminate the distortions due to strategic behaviour of politicians. Rather, strategic manipulation … shifts from public debt to public investment. As an alternative, we examine the effects of a capital borrowing rule which …