Two traditional explanations for the mean and variability of the term premium are: (i) time-varying risk premia on long bonds, and (ii) segmented markets between long- and short-term bonds. This paper integrates these two approaches into a medium-scale DSGE model. We consider two sources of...

Does monetary policy affect household inequality? Does household inequality affect monetary policy transmission? We build a two-agent New Keynesian model with conventional monetary policy and central bank asset purchases to quantitatively address these questions. Expansionary shocks to...

This paper studies the term premium in a general equilibrium model with a financial constraint and central bank asset purchases. Structural estimates of the term premium match past empirical measures. Term premium dynamics are policy dependent, with Federal Reserve quantitative easing programs...

The New Keynesian literature focuses on rules-based interest rate policies, abstracting from the role of monetary aggregates. In the background, though, the quantity equation must hold — every transaction requires money, with money units used in multiple transactions within a period. What is...

This paper analyzes the implications of the gradual rise in bank concentration since the 1990s for the transmission of monetary policy. I use branch-level data on deposit and loan rates to evaluate the monetary policy pass-through conditional on the level of local bank concentration and bank...

Die Unternehmen in Deutschland sind seit 2021 mit starken Kostenanstiegen konfrontiert. Inwieweit geben die Unternehmen die Preiserhöhungen an ihre Kunden weiter? Basierend auf der Konjunkturumfrage des ifo Instituts zeigt sich eine unvollständige Preisweitergabe. Im Durchschnitt haben die...

This paper examines the pass-through of cost-push shocks to customers at a granular level. Using unique firm-level survey data, we document five facts about pass-through across firms, sectors, and over time. We highlight a new channel relevant for pass-through: beliefs about the expected...