Optimal Monetary Policy According to HANK

نویسندگان

چکیده

We study optimal monetary policy in an analytically tractable heterogeneous agent New Keynesian model with rich cross-sectional heterogeneity. Optimal differs from a representative benchmark because can affect consumption inequality, by stabilizing risk arising both idiosyncratic shocks and unequal exposures to aggregate shocks. The trade-off between productive efficiency, price stability is summarized simple linear-quadratic problem yielding interpretable target criteria. Stabilizing inequality requires putting some weight on the level of output, correspondingly reducing weights output gap relative benchmark. (JEL E12, E23, E31, E32, E52, E62)

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ژورنال

عنوان ژورنال: The American Economic Review

سال: 2023

ISSN: ['2640-205X', '2640-2068']

DOI: https://doi.org/10.1257/aer.20200239