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sustainability: the huge amount of government bonds outstanding; continued budget deficits; and the growing age-related spending. The …
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ratio of 150%. There are three big challenges to fiscal sustainability: the huge government bonds outstanding; continued …
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This paper connects two salient economic features: (i) Fiscal shocks have asymmetric effects across business cycle phases (Gechert et al., 2019); (ii) Okun's coefficient is time varying and may be unstable. The intertwined dynamic behavior of fiscal shocks and unemployment-output trade-offs are...
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