Davig, Troy; Leeper, Eric M.; Walker, Todd B. - In: European Economic Review 55 (2011) 1, pp. 31-47
limit". The fiscal limit is defined as the point where the government no longer has the ability to finance higher debt … timing of when the fiscal limit is hit. One policy option that stabilizes debt is a passive monetary policy, which generates …We use a rational expectations framework to assess the implications of rising debt in an environment with a "fiscal …