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 …

We characterize optimal policy rules in business-cycle models with nominal rigidities and
heterogeneous households. The derived rules are expressed in terms of the causal effects …

We study optimal monetary policy in an analytically tractable heterogeneous agent New
Keynesian model with rich cross-sectional heterogeneity. Optimal policy differs from a …

We derive optimal monetary and fiscal policies in a heterogeneous-agent economy with
nominal frictions and aggregate shocks, and allowing for a rich set of fiscal tools. We first …

Abstract We develop a New Keynesian model with household heterogeneity and bounded
rationality in the form of cognitive discounting. The interaction of household heterogeneity …

We study the redistributive effects of inflation combining administrative bank data with an
information provision experiment during an episode of historic inflation. On average …

Inequality is increasingly a policy concern. It is well known that fiscal and structural policies
can mitigate inequality. However, less is known about the potential role of monetary policy …

This paper analyzes the link between monetary policy and capital misallocation in a New
Keynesian model with heterogeneous firms and financial frictions. In the model, firms with a …

This paper studies the implications of central bank credibility for long-run inflation and
inflation dynamics. We introduce central bank lack of commitment into a standard non-linear …

Many modern theories of the business cycle generate demand-driven fluctuations by
assuming that monopolistic firms set a price in advance and commit to supplying the market …