This paper studies the macroeconomic effect of the state dependency of central bank asset market operations and their interactions with household heterogeneity. We build a New Keynesian model with borrowers and savers in which quantitative easing and …
We study the interaction between monetary policy and labor supply decisions at the household level. We uncover evidence of heterogeneous responses and a strong countercycli- cality of hours worked in the left tail of the income distribution, …
We study the implications of a ‘dual mandate’ of price and output stability in a heterogeneous agent New Keynesian (HANK) economy where fiscal policy is committed to satisfying the present value government budget constraint at all times. In this …