Heterogeneous consumers, segmented asset markets, and the effects of monetary policy
This paper examines the implications of segmented assets markets for the real and nominal effects of monetary policy. I develop a model, in which varieties of consumption bundles are purchased sequentially. Newly injected money thus disseminates slowly through the economy via second-round effects an...
Gespeichert in:
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| Dokumenttyp: | Book/Monograph Arbeitspapier |
| Sprache: | Englisch |
| Veröffentlicht: |
Bonn
Graduate School of Economics
2010
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| Schriftenreihe: | Bonn econ discussion papers
2010,08 |
| In: |
Bonn Econ Discussion Papers (2010,08)
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| Online-Zugang: | Download aus dem Internet, Stand 20.04.2010, Volltext: http://hdl.handle.net/10419/38808 Verlag, Volltext: http://www.bgse.uni-bonn.de/bonn-econ-papers-1/archive/2010/zeno-enders-heterogeneous-consumers-segmented-asset-markets-and-the-effects-of-monetary-policy-no.-08-2010 
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| Verfasserangaben: | by Zeno Enders |
| Zusammenfassung: | This paper examines the implications of segmented assets markets for the real and nominal effects of monetary policy. I develop a model, in which varieties of consumption bundles are purchased sequentially. Newly injected money thus disseminates slowly through the economy via second-round effects and induces a non-degenerate, long-lasting heterogeneity in wealth. As a result, the effective elasticity of substitution differs across households, affecting optimal markups chosen by producers. In line with empirical evidence, the model predicts a short-term inflation-output trade-off, a liquidity effect, countercyclical markups, and procyclical profits and wages after monetary shocks. -- Segmented Asset Markets ; Monetary Policy ; Countercyclical Markups ; Liquidity Effect ; Limited Participation |
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| Beschreibung: | Online Resource |
| Dokumenttyp: | Systemvoraussetzungen: Acrobat Reader. |