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
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Working Paper: Monetary Policy over the Life Cycle (2021)
Working Paper: Monetary Policy over the Lifecycle (2021)
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DOI: 10.1016/j.red.2025.101274

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