investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … considers the individual inflation rate of the household experiencing the higher inflation rate. Furthermore, output fluctuates … less under that regime. After a negative supply shock, a central bank only considering the household experiencing the …

We have investigated the influence of fiscal instruments, notably taxes on income and government spending, on household … consumption in two different samples and two measures of household debt to provide a comprehensive analysis of the topic. We used … government spending or reduced taxes, in the presence of high indebtedness, actually discourage household consumption compared to …

to consume (MPCs). Our main contribution is to document how MPCs vary with household characteristics and prize size, and … systematic relations with observables point toward well-understood mechanisms from existing theory and should be useful to …