Countries that face a high level of public debt has limitations to using fiscal stimulus.
High public debt led to higher interest payments, so much money that could be used
to stimulate demand to be paid to creditors. As a result, the efficiency of fiscal
policy is also limited. Just as bound on a nominal interest rate of zero which leads
to a liquidity trap and the failure of monetary policy, which leads to high debt fiscal
space is very narrow and the failure of fiscal policy (Bartha and Gubik, 2012)
Aan Jaelani. Fiscal Policy in Indonesia: Analysis of State Budget 2017 in Islamic
Economic Perspective. (2016)