Optimal Monetary Policy According to HANKt

• 成果类型: Article
• 署名作者: Acharya, Sushant; Challe, Edouard; Dogra, Keshav
• 署名单位: Bank of Canada; European University Institute; Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20200239
• 发表日期: 2023
• 页码: 1741-1782
• 关键词: inequality; MARKETS

摘要

We study optimal monetary policy in an analytically tractable het-erogeneous agent New Keynesian model with rich cross-sectional heterogeneity. Optimal policy differs from a representative agent benchmark because monetary policy can affect consumption inequality, by stabilizing consumption risk arising from both idio-syncratic shocks and unequal exposures to aggregate shocks. The trade-off between consumption inequality, productive efficiency, and price stability is summarized in a simple linear-quadratic prob-lem yielding interpretable target criteria. Stabilizing consumption inequality requires putting some weight on stabilizing the level of output, and correspondingly reducing the weights on the output gap and price level relative to the representative agent benchmark. (JEL E12, E23, E31, E32, E52, E62)