Padoan, Pier Carlo; Sila, Urban; Noord, Paul Joseph van den - 2012
dynamics. The “bad equilibrium” is characterised by the simultaneous occurrence, and adverse feedbacks between, high and …, whereas a “good equilibrium” is characterized by stable growth and debt and low risk premia. We use this framework to identify … – both theoretically and empirically – the good and bad equilibrium levels of debt and policies that can help a country …