Households face large income uncertainty that varies substantially over the business cycle.
We examine the macroeconomic consequences of these variations in a model with …

This paper incorporates limited asset markets participation in dynamic general equilibrium
and develops a simple analytical framework for monetary policy analysis. Aggregate …

This paper assesses the importance of heterogeneity in household portfolios for the
transmission of monetary policy in a New Keynesian business cycle model with uninsurable …

It has been argued that rule‐of‐thumb consumers substantially alter the determinacy
properties of interest rate rules and the dynamics of an otherwise standard New Keynesian …

Using a panel data set of the 28 EU countries from 1970 to 2015, we study the nature of
monetary and fiscal policies of both respective authorities and assess how economic and …

This paper investigates the interactions between stock market fluctuations and monetary
policy within a DSGE model for the US economy. First, we design a framework in which …

Recent work on optimal monetary and fiscal policy in New Keynesian models suggests that
it is optimal to allow steady‐state debt to follow a random walk. In this paper we consider the …

This paper develops a small-scale DSGE model that embeds a demographic structure within
a monetary policy framework. We extend the nonmonetary overlapping-generations model …

In standard macroeconomic models, equilibrium stability and uniqueness require monetary
policy to actively target inflation and fiscal policy to ensure long‐run debt sustainability. We …

A small amount of nominal wage stickiness makes limited asset market participation (LAMP)
irrelevant for the design of monetary policy. Recent research argues that LAMP could invert …