Benigno, Gianluca; Chen, Huigang; Otrok, Christopher M.; … - 2019
social planner is constrained by the same borrowing limit that agents face. In this paper, we show that the same set of … policy tools that implement the constrained efficient allocation can be used by a Ramsey planner to replicate the … unconstrained allocation, thus achieving higher welfare. The constrained social planner approach may lead to inaccurate …