multiplier is 1.5 in the ZLB period, and 0.6 outside of it. We estimate that government spending shocks increase both private …

-agent New Keynesian model, this paper shows analytically that the multiplier on targeted transfers to financially constrained … households is (i) larger than the purchase multiplier if the zero lower bound (ZLB) binds, and (ii) is more sensitive to the …, such as when the zero lower bound binds, the extra inflation from lower supply boosts the multiplier. This result also …