Heterogeneous Consumers, Demand Regimes, Monetary Policy and Equilibrium Determinacy

Giovanni Di Bartolomeo () and Lorenza Rossi

Rivista di Politica Economica, 2007, vol. 97, issue 5, 111-142

Abstract: This paper investigates the effects of monetary policy in presence of heterogeneous consumers. We study the effectiveness (quantitative effects) of monetary policy and equilibrium determinacy properties of a New Keynesian DSGE model where a fraction of households cannot smooth consumption. We show that twodemand regimes can emerge (according to the «slope» of IS curve) and that the main unconventional results, stressed by recent literature, only hold in the unconventional case of an IS curve positively sloped.

JEL-codes: E61 E63 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Heterogeneous Consumers, Demand Regimes, Monetary Policy and Equilibrium Determinacy (2007)
Working Paper: Heterogeneous consumers, demand regimes, monetary policy and equilibrium determinacy (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:rpo:ripoec:v:97:y:2007:i:5:p:111-142

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