Monetary Policy Over the Lifecycle

R. Braun and Daisuke Ikeda

Review of Economic Dynamics, 2025, vol. 56

Abstract: We propose a quantitative model of monetary policy over the lifecycle with endogenous portfolio choices. Our model reproduces the average age profiles of asset portfolios, the empirical responses of aggregate variables, and the microeconomic responses of different age groups to a tightening in monetary policy. Households disagree about the benefits of a tighter monetary policy. Consumption and welfare of older age groups increase, but consumption and welfare of younger households fall. (Copyright: Elsevier)

Keywords: Monetary policy; Intergenerational redistribution; Lifecycle; Portfolio choice; Nominal government debt; Tobin effect (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://dx.doi.org/10.1016/j.red.2025.101274
None

Related works:
Software Item: Code and data files for "Monetary Policy Over the Lifecycle" (2025)
Working Paper: Online Appendix to "Monetary Policy Over the Lifecycle" (2025)
Working Paper: Monetary Policy over the Life Cycle (2021)
Working Paper: Monetary Policy over the Lifecycle (2021)
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:red:issued:23-172

Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/

DOI: 10.1016/j.red.2025.101274

Access Statistics for this article

Review of Economic Dynamics is currently edited by Loukas Karabarbounis

More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().