This paper reviews recent research on the relationship between central bank policies and
inequality. A new paradigm which integrates sticky‐prices, incomplete markets, and …

Why are some people wealthy while others are poor? To what extent can governments affect
inequality? Which instruments should they use? Answering these questions requires …

We provide a model of an endowment economy with two competing, but intrinsically
worthless currencies (Dollar, Bitcoin). Dollars are supplied by a central bank to achieve its …

This paper provides a critique of the DSGE models that have come to dominate
macroeconomics during the past quarter-century. It argues that at the heart of the failure …

We revisit the transmission mechanism from monetary policy to household consumption in a
Heterogeneous Agent New Keynesian (HANK) model. The model yields empirically realistic …

This paper quantitatively analyzes how policy responses to the COVID-19 pandemic should
differ in developing countries. To do so we build an incomplete-markets macroeconomic …

This paper formalizes and quantifies the secular stagnation hypothesis, defined as a
persistently low or negative natural rate of interest leading to a chronically binding zero …

We provide a systematic analysis of the properties of individual returns to wealth using 12
years of population data from Norway's administrative tax records. We document a number …

This book describes the latest advances in the theory of mean field games, which are
optimal control problems with a continuum of players, each of them interacting with the …

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 …