Cantore, Cristiano; Ferroni, Filippo; Mumtaz, Haroon; … - 2022
We study the interaction between monetary policy and labor supply decisions at the household level. We uncover evidence …, following a monetary policy shock in the US and the UK. That is, while aggregate hours and labor earnings decline, employed … monetary policy. We unveil a novel dampening effect on aggregate demand generated by the Hand-to-Mouth substitution of leisure …