Who is Afraid of Eurobonds?

We thank Bartosz Maćkowiak, Marco Bassetto, Ricardo Reis, Era Dabla-Norris, Michaela Elfsbacka Schmöller, Andrea Ferrero, Vivien Lewis, Stephanie Schmitt-Grohé, Kostas Theodoridis and all seminar and conference participants at SFRE 2023, the 2022 NBER Summer Institute (ME), Stanford University (SITE), the IMF's Advances in Monetary Economics Conference, the Fourth Biennial Conference on New Dimensions of Monetary Policy in Warsaw, ‘New Challenges for Monetary Policy’ in Mannheim, the Banque de France/CEPR joint meeting on ‘Monetary Policy, Fiscal Policy and Public Debt in a Post COVID World’, DebtCon6 Princeton, the ESM DSA seminar, the ESCB Research Cluster 2 hosted by Danmarks Nationalbank, the ‘Monetary/Fiscal Interactions 40 years after “Unpleasant Monetarist Arithmetic”’ Conference at the Minneapolis Fed, the SNB Annual Research Conference, the ECB Annual Conference, the Barcelona GSE Summer Forum, Padova Macro Talks 2022, Theories and Methods in Macroeconomics 2022, the CEBRA 2021 Annual Meeting, the 2021 Central Bank Macroeconomic Modelling Workshop, New York Fed, Chicago Fed, National Bank of Belgium, Sveriges Riksbank, Banque de France, DIW Berlin, and ISER of Osaka University for useful comments. We thank Elena Schlipphack for excellent research assistance. The views in this paper are solely those of the authors and should not be interpreted as reflecting the views of the European Central Bank or the National Bureau of Economic Research.