Showing 1 - 8 of 8
In this paper, we analyse the effects of transitory fiscal expansions when public debt is used as liquidity by the private sector. Aggregate shocks are introduced into a tractable flexible-price, incomplete-market economy where heterogenous, infinitely-lived agents face occasionally binding...
Persistent link: https://www.econbiz.de/10013136914
Persistent link: https://www.econbiz.de/10009381128
Persistent link: https://www.econbiz.de/10009261634
The joint behaviour of US aggregate consumption and saving over the period 20072009, and notably the pronouned U-shaped pattern of consumption together with the rise in saving, are difficult to reconcile with the view that financial markets are frictionless. We propose an alternative framework...
Persistent link: https://www.econbiz.de/10008809493
Persistent link: https://www.econbiz.de/10012211062
We study optimal monetary policy in a heterogeneous agent new Keynesian economy. A utilitarian planner seeks to reduce consumption inequality, in addition to stabilizing output gaps and inflation. The planner does so both by reducing income risk faced by households, and by reducing the...
Persistent link: https://www.econbiz.de/10012167490
We study optimal monetary policy in an analytically tractable Heterogeneous Agent New Keynesian model with rich cross-sectional heterogeneity. Optimal policy differs from that in a representative agent model because monetary policy can affect consumption inequality by reducing both idiosyncratic...
Persistent link: https://www.econbiz.de/10012657868
Persistent link: https://www.econbiz.de/10014317357