Inequality and optimal monetary policy in the open economy

• 成果类型: Article
• 署名作者: Acharya, Sushant; Challe, Edouard
• 署名单位: University of Melbourne; Centre for Economic Policy Research - UK; Paris School of Economics
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2025.104076
• 发表日期: 2025
• 关键词: open economy; new Keynesian model; INEQUALITY; optimal policy

摘要

We study optimal monetary policy in a tractable Small Open Economy Heterogeneous-Agent New Keynesian (SOE-HANK) model in which households face uninsured idiosyncratic risk and unequal bond-market access. We derive conditions under which optimal policy in our SOEHANK economy entails domestic producer price stability, extending the open-economy divine coincidence result of Gal & iacute; and Monacelli (2005) beyond the Representative-Agent benchmark (SOE-RANK). Away from those conditions, inefficient fluctuations in consumption inequality generate monetary policy tradeoffs. Under plausible calibrations for the trade elasticities, the elasticity of intertemporal substitution, and the cyclicality of income risk, the central bank stabilizes output and the exchange rate more than in SOE-RANK.