Publications

January 10, 2014

Government spending shocks, sovereign risk and the exchange rate regime

We analyse the effects of fiscal expansions using a New Keynesian model and find that the reverse holds in the presence of sovereign default risk.

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April 15, 2013

Optimal fiscal policy

This paper derives and estimates rules for fiscal policy that prescribe the optimal response to changes in unemployment and debt.

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June 6, 2012

When is debt sustainable?

This CPB Discussion Paper proposes indicators to assess government debt sustainability. Sustainable government finances can be achieved via three main channels: fiscal responses, economic growth and financial repression.

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