MoNK: Mortgages in a New-Keynesian Model
Carlos Carriga (),
Finn Kydland and
Roman Sustek ()
Additional contact information
Carlos Carriga: Federal Reserve Bank of St. Louis
Roman Sustek: Centre for Macroeconomics (CFM)
Authors registered in the RePEc Author Service: Carlos Garriga ()
No 1920, Discussion Papers from Centre for Macroeconomics (CFM)
Abstract:
We propose a tractable framework for monetary policy analysis in which both short - and long-term debt affect equilibrium outcomes. This objective is motivated by observations from two literatures suggesting that monetary policy contains a dimension affecting expected future interest rates and thus the costs of long-term financing. In New-Keynesian models, however, long-term loans are redundant assets. We use the model to address three questions: what are the effects of statement vs. action policy shocks; how important are standard New-Keynesian vs. cash flow effects in their transmission; and what is the interaction between these two effects?
Keywords: Mortgages; Cash-flow effects; Sticky prices; Monetary policy transmission; Monetary policy communication (search for similar items in EconPapers)
JEL-codes: E52 G21 R21 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2019-10
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
http://www.centreformacroeconomics.ac.uk/Discussio ... MDP2019-20-Paper.pdf (application/pdf)
Related works:
Journal Article: MoNK: Mortgages in a New-Keynesian model (2021) 
Working Paper: MoNK: Mortgages in a New-Keynesian Model (2019) 
Working Paper: MoNK: Mortgages in a New-Keynesian Model (2019) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cfm:wpaper:1920
Access Statistics for this paper
More papers in Discussion Papers from Centre for Macroeconomics (CFM) Contact information at EDIRC.
Bibliographic data for series maintained by Helen Power ().