GDP-indexed bonds

Publication date: 3 May 2019 | Publication type: NIESR Discussion Paper | Theme: Macroeconomics | External authors: Kwon, Y | JEL classification: E62, E63, H63 | NIESR discussion paper number: 504
We examine the welfare effects of GDP-indexed bonds in a New Keynesian DSGE model. We add to a literature showing that the issuance of GDP-indexed bond may help stabilise public debt and so give more room for countercyclical fiscal policy, by conducting a careful general equilibrium welfare...