How high can public debt rise without compromising fiscal solvency? We answer this question using a stochastic ability-to-pay model of sovereign default in which risk-neutral investors lend to a government that displays "fiscal fatigue," because its ability to increase primary balances cannot...

Cover -- Contents -- Foreword -- Preface -- Abbreviations -- Contributors -- 1 From Great Depression to Great Recession: An Overview -- PART I. PERSPECTIVES FROM THE PAST: SECULAR STAGNATION AND ASYMMETRIC BURDEN OF ADJUSTMENT -- 2 Learning Lessons from Previous Crises: The Capital Account and...