I use the valuation equation of government debt to understand fiscal and monetary policy in
and following the great recession of 2008–2009. I also examine policy alternatives to avoid …

This review describes interactions between monetary and fiscal policies that affect
equilibrium price levels and interest rates by critically surveying theories about (a) optimal …

This paper studies the maturity composition and the term structure of interest rate spreads of
government debt in emerging markets. In the data, when interest rate spreads rise, debt …

This article explores a new approach to identifying government spending shocks which
avoids many of the shortcomings of existing approaches. The new approach is to identify …

We empirically investigate the impact of government debt on corporate financing decisions
in an international setting. We show a negative relation between government debt and …

This paper uses a sequence of government budget constraints to motivate estimates of
returns on the US Federal government debt. Our estimates differ conceptually and …

The market value of outstanding federal government debt in the US exceeds the expected
present discounted value of current and future primary surpluses by a multiple of US GDP …

This paper proposes a new method for measuring the impact of inflation on the real value of
public debt. The distribution of debt debasement is based on two inputs: the distribution of …

Elevated levels of government debt raise concerns about their effects on long-term growth
prospects. Using the cross-section of US stock returns, we show that (i) high-R&D firms are …

Fiscal deficits represent an important variable for banks' aggregate credit risk, revealing
governments' ability to curb banks' losses in bad states, either with direct cash infusions or …