The paper explores the redistributive effects of a monetary policy in a limited participation framework and skill heterogeneity among labor. The main finding is that an expansionary monetary policy redistributes consumption between financial market participants and non participants, as well as...

We study the transmission of monetary policy in the presence of heterogeneous households and examine the implications when the share of constrained households is a function of monetary policy. We build an analytically tractable heterogeneous agent New Keynesian model (THANK) with an endogenous...

The eurozone sovereign debt crisis, characterized by enormous debt burdens faced by its weakest economies, has also induced a parallel credit crunch and illiquidity concerns for European banks. Bank holdings of sovereign debt issued by peripheral eurozone countries have dropped in value and are...

By employing a development finance approach, this paper examines the role of domestic savings, foreign resources and monetary aggregates in promoting economic growth in China. A two-equation model incorporating the financial repression paradigm, the structuralist “two gap” analysis, and the...

Concerns over rising inequality have heightened in the years following the 2007-09 global financial crisis and, more recently, with the COVID-19 pandemic. This staff discussion paper reviews the historical facts regarding income inequality in Canada, comparing Canada with the United States and...