Dokument: Household inflation heterogeneity and the relative price elasticity channel of monetary policy
| Titel: | Household inflation heterogeneity and the relative price elasticity channel of monetary policy | |||||||
| URL für Lesezeichen: | https://docserv.uni-duesseldorf.de/servlets/DocumentServlet?id=68085 | |||||||
| URN (NBN): | urn:nbn:de:hbz:061-20250109-134353-6 | |||||||
| Kollektion: | Publikationen | |||||||
| Sprache: | Englisch | |||||||
| Dokumententyp: | Wissenschaftliche Texte » Artikel, Aufsatz | |||||||
| Medientyp: | Text | |||||||
| Autoren: | Neyer, Ulrike [Autor] Stempel, Daniel [Autor] | |||||||
| Dateien: |
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| Stichwörter: | Household heterogeneity, Monetary policy transmission, Inequality, Inflation, New Keynesian models | |||||||
| Beschreibung: | This paper shows that considerable differences in inflation rates exist among households in the United States. Against this background, we theoretically show that a central bank that considers household inflation heterogeneity can stabilize overall inflation more effectively. Using a tractable, multi-sector New Keynesian model with a low- and a high-income household, we show that a central bank that reacts to the inflation rate of the household less affected by price changes can achieve lower deviations of all households’ inflation rates from their steady states. The reason is that a weaker central bank reaction dampens an adverse relative price elasticity channel of monetary policy, allowing for more favorable relative price adjustments. The strength of this channel depends on household heterogeneity. | |||||||
| Rechtliche Vermerke: | Originalveröffentlichung:
Neyer, U., & Stempel, D. (2024). Household inflation heterogeneity and the relative price elasticity channel of monetary policy. Economic Modelling, 144, Article 106980. https://doi.org/10.1016/j.econmod.2024.106980 | |||||||
| Lizenz: |  Dieses Werk ist lizenziert unter einer Creative Commons Namensnennung 4.0 International Lizenz | |||||||
| Fachbereich / Einrichtung: | Wirtschaftswissenschaftliche Fakultät | |||||||
| Dokument erstellt am: | 09.01.2025 | |||||||
| Dateien geändert am: | 09.01.2025 |
