What model features and calibration strategies yield a large average marginal propensity to
consume (MPC) in heterogeneous agent models? Through a systematic investigation of …

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

We ask three questions about the connection between monetary policy and inequality. First,
does monetary policy affect inequality? While different households respond to changes in …

Motivated by the effects of the COVID-19 pandemic, we present a theory of Keynesian
supply shocks: shocks that reduce potential output in a sector of the economy, but that, by …

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

We generalize the traditional, static Keynesian cross by deriving an intertemporal Keynesian
cross for the dynamic output response to government spending and taxes in microfounded …

In this essay, we discuss the emerging literature in macroeconomics that combines
heterogeneous agent models, nominal rigidities, and aggregate shocks. This literature …

THANK is a tractable heterogeneous-agent New-Keynesian model that captures analytically
core micro-heterogeneity channels of quantitative-HANK: cyclical inequality and risk; self …

Using household survey data for the US and the UK, we show that the aggregate response
of consumption to interest rate changes is driven by households with a mortgage. Outright …

We investigate the transmission of monetary policy to household consumption using
administrative data on the universe of households in Norway. On the basis of identified …