Sudden Stops and optimal policy in a two-agent economy

• 成果类型: Article
• 署名作者: Biljanovska, Nina; Vardoulakis, Alexandros P.
• 署名单位: International Monetary Fund; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2024.103894
• 发表日期: 2024
• 关键词: Sudden stops; agent heterogeneity; Macroprudential policy; Payroll tax policy

摘要

We introduce heterogeneity between workers and entrepreneurs in a standard Fisherian model to study Sudden Stop dynamics and optimal policy. The distinction between workers and entrepreneurs introduces a redistributive motive that meaningfully interacts with Fisherian deflation. While in tranquil times redistribution is driven by the relative marginal utilities of consumption, the planner additionally favors entrepreneurs during Sudden Stops to mitigate Fisherian deflation. We show how heterogeneity adds to the understanding of how ex ante and ex post policies can be best designed to alleviate the negative effects of Sudden Stops.