A HANK2 model of monetary unions

• 成果类型: Article
• 署名作者: Bayer, Christian; Kriwoluzky, Alexander; Mueller, Gernot J.; Seyrich, Fabian
• 署名单位: University of Bonn; Centre for Economic Policy Research - UK; Leibniz Association; Ifo Institut; IZA Institute Labor Economics; Free University of Berlin; Leibniz Association; DIW Berlin - Deutsches Institut fur Wirtschaftsforschung; Eberhard Karls University of Tubingen
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2024.103579
• 发表日期: 2024
• 关键词: OCA theory; Two-country model; monetary union; monetary policy; Household heterogeneity; INEQUALITY

摘要

How does a monetary union alter the impact of business cycle shocks at the household level? We develop a Heterogeneous Agent New Keynesian model of two countries (HANK(2)) and show in closed form that a monetary union shifts the adjustment to a shock horizontally across countries, within the brackets of the union-wide wealth distribution, rather than vertically, that is, across the brackets of the union-wide wealth distribution. Calibrating the model to the euro area reveals that a monetary union alters the impact of shocks most strongly in the tails of the wealth distribution but leaves the middle class almost unaffected.