Department of Economics

Faculty of Arts and Social Sciences

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Seminar - Upcoming

   
 
Seminars
 
Upcoming
2013 Asia Summer Institute in Behavioral Economics
Asian Meeting of the Econometric Society 2013
Past Events

Department Seminar

Topic:

Doves for the Rich, Hawks for the Poor? Distributional Consequences of Monetary Policy

Speaker:

Keith Kuester
University of Bonn
Date: Feb 16, Tue

Time: 4 - 5:30 pm


Venue: Lim Tay Boh Seminar Room (AS2 03-12)
National University of Singapore
1 Arts Link, Singapore 117570


Chair: Martin Bodenstein

Abstract:

We build a New Keynesian business cycle model with the novel feature of rich household heterogeneity. Households differ in the amount of savings, their patience, labor productivity, and employment status. Labor-market transitions are subject to matching frictions. We allow for aggregate saving. As a result, household heterogeneity affects the transmission of monetary policy to aggregate consumption, but hardly to GDP. Nevertheless, monetary policy has sizable distributional consequences. A majority of households would prefer monetary policy to be more accommodative than would be optimal absent the heterogeneity and market incompleteness, helping "Main Street'' at the expense of "Wall Street"