A Goldilocks Theory of Fiscal Deficits

Atif Mian, Ludwig Straub and Amir Sufi

No 29707, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper proposes a tractable framework to analyze fiscal space and the dynamics of government debt, with a possibly binding zero lower bound (ZLB) constraint. Without the ZLB, a greater primary deficit unambiguously raises debt. However, debt need not explode: When R

JEL-codes: E31 E62 H30 H62 H63 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-mac
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