Broner, Fernando; Clancy, Daragh; Erce, Aitor; Martin, … - 2019
This paper explores a natural connection between fiscal multipliers and foreign holdings of public debt. Although … advanced economies. We combine this data with standard measures of fiscal policy shocks and show that, indeed, the size of … fiscal multipliers is increasing in the share of public debt held by foreigners. In particular, the fiscal multiplier is …