Showing 1 - 10 of 69
In the past decade, a new paradigm for fiscal and monetary policy analysis has emerged, combining the canonical macro model of income and wealth inequality with the New Keynesian model. These Heterogeneous-Agent New Keynesian ("HANK") models feature new transmission channels and allow for the...
Persistent link: https://www.econbiz.de/10015072932
-existing development gaps in data economies on each country's production and international trade. Raw data as byproducts of consumption can …
Persistent link: https://www.econbiz.de/10014322803
We re-examine monetary policy spillovers to Emerging Market Economies (EME) in the form of capital flow reversals, using sectoral-level securities holdings data for Euro Area investors. In response to a surprise monetary tightening, active investors such as investment funds re-balance their...
Persistent link: https://www.econbiz.de/10015072927
We show that the largest increase in unemployment benefits in U.S. history had large spending impacts and small job-finding impacts. This finding has three implications. First, increased benefits were important for explaining aggregate spending dynamics--but not employment dynamics--during the...
Persistent link: https://www.econbiz.de/10013361970
rationalize these results, we develop a dynamic consumption model showing how coupons' minimum spending thresholds create …
Persistent link: https://www.econbiz.de/10014528415
of consumption/saving decisions, thereby enriching the determinants of aggregate demand and affecting the transmission of …
Persistent link: https://www.econbiz.de/10014544789
The Covid pandemic disrupted supply chains and labor markets, with heterogeneous effects on demand and supply across industries. Meanwhile governments responded with unprecedented stimulus packages, and inflation increased to its highest values in 40 years. In this paper I investigate the...
Persistent link: https://www.econbiz.de/10014512048
We study a new type of monetary-fiscal interaction in a heterogeneous-agent New Keynesian model with a fiscal block. Due to household heterogeneity, the stock of public debt affects the natural interest rate, forcing the central bank to adapt its monetary policy rule to the fiscal stance to...
Persistent link: https://www.econbiz.de/10014512073
In response to the Global Financial Crisis, central banks engaged in large-scale asset purchases funded by the issuance of reserves. These "unconventional" policies continued during the pandemic, so that by 2022 central banks' balance sheets had grown up to ten-fold. As a result of rapidly...
Persistent link: https://www.econbiz.de/10014544756
inflation, increasing consumption demand and house prices. The power of fiscal stimulus grows when borrowers are more indebted …
Persistent link: https://www.econbiz.de/10014576602