The transmission of monetary policy through redistributions and durable purchases

• 成果类型: Article
• 署名作者: Sterk, Vincent; Tenreyro, Silvana
• 署名单位: University of London; University College London; University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.07.003
• 发表日期: 2018
• 页码: 124-137
• 关键词: Open market operations; Durables; heterogeneous agents

摘要

Using a tractable OLG model with government debt, we study a redistribution channel for the transmission of monetary policy. Expansionary open-market operations generate a negative wealth effect, increasing households' incentives to save and pushing down the real interest rate. This leads to a substitution towards durables, generating a temporary boom in the durable-good sector. With search and matching frictions, the fall in interest rates causes an increase in labor demand, raising aggregate employment. The model mimics the empirical responses of key macroeconomic variables to monetary policy interventions. The fiscal policy stance plays a key role in the transmission mechanism. Crown Copyright (C) 2018 Published by Elsevier B.V. All rights reserved.