This study investigates the interrelation between the household leverage cycle, collateral constraints, and monetary … fall in economic activity during periods of household deleveraging. In contrast, monetary policy shocks only have … insignificant effects during a household leveraging state. These results are robust to alternative definitions of leveraging and …

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 …

In this paper we study the role of household portfolio rebalancing channel for the aggregate and redistributive effects … subsequent wealth effect on consumption. In order to jointly study these effects, we introduce an heterogeneous household life … reduction in expected return on household portfolio. However, the strength of these two forces notably varies depending on …