Understanding HANK: Insights From a PRANK

• 成果类型: Article
• 署名作者: Acharya, Sushant; Dogra, Keshav
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York; Center for Economic & Policy Research (CEPR)
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA16409
• 发表日期: 2020
• 页码: 1113-1158
• 关键词: monetary-policy; fiscal-policy; public debt; consumption; redistribution; uncertainty; INEQUALITY; demand; RISK

摘要

Using an analytically tractable heterogeneous agent New Keynesian model, we show that whether incomplete markets resolve New Keynesian paradoxes depends on the cyclicality of income risk. Incomplete markets reduce the effectiveness of forward guidance and multipliers in a liquidity trap only with procyclical risk. Countercyclical risk amplifies these puzzles. Procyclical risk permits determinacy under a peg; countercyclical risk may generate indeterminacy even under the Taylor principle. By affecting the cyclicality of risk, even passive fiscal policy influences the effects of monetary policy.