Optimal monetary policy and liquidity with heterogeneous households

被引：13
|
作者：
Bilbiie, Florin O. [1 ,2 ]
Ragot, Xavier [3 ,4 ]
机构：
[1] Univ Lausanne, Lausanne, Switzerland
[2] CEPR, London, England
[3] CNRS, Sci Po, Paris, France
[4] OFCE, Paris, France
来源：
REVIEW OF ECONOMIC DYNAMICS | 2021年 / 41卷
关键词：
Optimal (Ramsey) monetary policy; Heterogeneous households; Incomplete markets; Money; Inequality; Helicopter drops; WELFARE COST; INFLATION; MODEL; QUANTITY; SEARCH; MARKET; DEBT;
D O I：
10.1016/j.red.2020.10.003
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
A liquidity-insurance motive for monetary policy operates when heterogeneous households use government-provided liquidity ("money") to insure idiosyncratic risk. In our tractable sticky-price model this changes the central bank's trade-off by adding a linear benefit of insurance in the second-order approximation to aggregate welfare. Inflation volatility hinders the consumption volatility of constrained households as a side-effect of liquidity insuring them; but price stability has quantitatively significant welfare costs only when monopolistic rents are also large, which indicates a complementarity between imperfect insurance and New-Keynesian distortions. Helicopter drops are welfare-superior to open market operations to achieve insurance, but quantitatively their benefit is surprisingly small. (C) 2020 Elsevier Inc. All rights reserved.
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页码：71 / 95
页数：25
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