Edouard Challe

amse seminar

Edouard Challe

École Polytechnique, CREST
Optimal monetary policy according to HANK
Co-écrit avec
Sushant Acharya, Keshav Dogra
Événement annulé
Lieu

IBD Amphi

Îlot Bernard du Bois - Amphithéâtre

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Lundi 23 mars 2020| 14:30 - 15:45
Contact(s)

Sarah Flèche : sarah.fleche[at]univ-amu.fr
Agnès Tomini : agnes.tomini[at]univ-amu.fr

Résumé

We study optimal monetary policy in a Heterogenous-Agent New-Keynesian economy. A utilitarian planner seeks to reduce consumption inequality, in addition to stabilizing output gaps and inflation. The planner does so both by reducing income risk faced by households, and by reducing the pass-through from income to consumption risk, trading-off the benefits of lower inequality against productive inefficiency and higher inflation. When income risk is countercyclical, policy curtails the fall in output in recessions to mitigate the increase in inequality. We uncover a new form of time-inconsistency of the Ramsey-plan - the temptation to exploit households’ unhedged interest-rate exposure to lower inequality.

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