rate. Money’s role in monetary policy has been tertiary, at best. Indeed, several influential economists have suggested … that money is irrelevant for monetary policy. They suggest that central banks can control inflation by (i) controlling a … rate in order to exert greater control over longer-term rates. I offer an alternative perspective: namely, that money is …

introduced into NNS models to try and reconcile the movements in interest rates, consumption and inflation. The key findings here … are that heterogeneity and wage inertia are needed to help reconcile these observations. Aggregate consumption and its … wages one periods in advance. When myopic households set wages in the current period, aggregate consumption and its expected …