Woodford, Michael; Xie, Yinxi - 2021 - Last updated: October 18, 2021
This paper reconsiders the degree to which macroeconomic stabilization is possible when the zero lower bound is a … particular, we reconsider the potential role of countercyclical fiscal transfers as a tool of stabilization policy. Because … even make possible complete stabilization of both aggregate output and inflation under certain circumstances, despite the …