Heterogeneous consumers, segmented asset markets, and the real effects of monetary policy
Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association
This paper proposes a novel mechanism by which changes in the distribution of money holdings have real effects. Specifically, I develop a flexible-price model of segmented asset markets that generates real aggregate effects of monetary policy through the dependence of optimal markups on the heterogeneity of money holdings. Because varieties of consumption bundles are purchased sequentially, newly injected money disseminates slowly throughout the economy via second-round effects.
JEL-codes: E31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-mac and nep-mon
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Working Paper: Heterogeneous Consumers, Segmented Asset Markets, and the Real Effects of Monetary Policy (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168227
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