New perspectives on monetary policy

Moritz Schularick

No 3, Working Papers from Forum New Economy

Abstract: This paper presents and discusses new perspectives on the framework of monetary policy that challenge the current paradigm: (i) The development of heterogeneous agent models in which “divine coincidence†no longer holds and trade-offs between inflation and output stabilization arise; (ii) New theoretical and empirical evidence on the distributional effects of conventional and unconventional monetary policy; (iii) Evidence that stabilization policy by central banks invites more leverage, risktaking and a rising exposure of intermediaries to the systematic risks that central banks insure, which in turn increases financial and economic fragility.

Keywords: monetary policy; heterogeneous agent model; inequality; asset prices; Central Banks´ mandate; stabilization policy (search for similar items in EconPapers)
JEL-codes: E42 E52 E58 E64 H63 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2022-02
New Economics Papers: this item is included in nep-cba and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:agz:wpaper:2203

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