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

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Gornemann, Nils, Kuester, Keith, Nakajima, Makoto
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2021

We build a New Keynesian business-cycle model with rich household heterogeneity. In the model, systematic monetary stabilization policy affects the distribution of income, income risks, and the demand for funds and supply of assets: the demand, because matching frictions render idiosyncratic labor-m...