Monetary Policy and the Redistribution Channel
Adrien Auclert | 28 June 2017
Monetary,
Research Papers | Tags:
Income Inequality,
Inflation,
Interest Rates This paper evaluates the role of redistribution in the transmission mechanism of monetary policy to consumption. Three channels affect aggregate spending when winners and losers have different marginal propensities to consume: an earnings heterogeneity channel from unequal income gains, a Fisher channel from unexpected inflation,
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Monetary Policy, Macroprudential Regulation and Inequality
Pierre Monnin | 12 April 2017
Monetary,
Discussion Notes | Tags:
Inequality,
Interest Rates,
Macroprudential Policy The 2008 global financial crisis profoundly changed the role of central banks in the economy. First, central banks engaged in strong expansionary monetary policy, using new unconventional tools to boost economic activity. Second, they were key to containing financial instability, which led them to implement
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Monetary Policy According to HANK
Greg Kaplan,
Benjamin Moll and
Giovanni L. Violante | 10 March 2016
Monetary,
Research Papers | Tags:
Inequality,
Interest Rates We revisit the transmission mechanism of monetary policy for household consumption in a Heterogeneous Agent New Keynesian (HANK) model. The model yields empirically realistic distributions of household wealth and marginal propensities to consume because of two key features: multiple assets with different degrees of liquidity
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Low Interest Rates: An Opportunity for Renewables
Pierre Monnin | 8 July 2015
Monetary,
Blog | Tags:
Energy,
Interest Rates Putting the economy on an environmentally sustainable path requires a serious shift into green technologies. Such a shift includes substantial investments in technologies that are based on renewable energy to produce electricity – referred to hereinafter as “green energy technologies”. Interest rates directly and significantly
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The Impact of Interest Rates on Electricity Production Costs
Pierre Monnin | 25 June 2015
Monetary,
Discussion Notes | Tags:
Energy,
Interest Rates Putting the economy on an environmentally sustainable path requires substantial investments in green energy technologies. Long-term interest rates play a crucial role for energy investments. Against this background, we study the impact of interest rates on the costs of producing electricity with different technologies, using
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