What is the optimal fiscal policy response to a recession when the government is subject to sovereign risk? We study this question in a model of endogenous sovereign default with …
G Bandeira, J Caballé, E Vella - Journal of Economic Dynamics and Control, 2022 - Elsevier
What is the role of emigration in a deep recession when the government implements fiscal consolidation? To answer this question, we build a small open economy New Keynesian …
J Bianchi, P Ottonello, I Presno - Journal of Political …, 2023 - journals.uchicago.edu
What is the optimal fiscal policy response to a recession when the government is subject to sovereign risk? We study this question in a model of endogenous sovereign default with …
S Liu - Journal of International Economics, 2022 - Elsevier
This paper examines the state-dependent multipliers of government spending in sudden stop economies. First, I provide cross-country evidence that an increase in government …
AC Novelli, G Barcia - Journal of Macroeconomics, 2021 - Elsevier
Of the different types of government outlays, since the 2000s public investment has been the main variable of adjustment during recessions in advanced and emerging economies …
Issuances of state-contingent sovereign bonds have been limited both in quantity and frequency. One of the reasons argued in the literature is that these bonds would carry a …
A model with two essential elements, sovereign default and distortionary fiscal and monetary policies, explains the interaction between sovereign debt, default risk and inflation in …
Fiscal Policy, Sovereign Risk, and Unemployment Page 1 Fiscal Policy, Sovereign Risk, and Unemployment Javier Bianchi Pablo Ottonello FRB Minneapolis and NBER University …
Sovereign debt crises coincide with deep recessions. I propose a model of sovereign debt that rationalizes large contractions in economic activity via an aggregate-demand …