A Ramsey planner chooses a distorting tax on labor and manages a portfolio of securities in
an economy with incomplete markets. We develop a method that uses second order …

We revisit the transmission mechanism from monetary policy to household consumption in a
Heterogeneous Agent New Keynesian (HANK) model. The model yields empirically realistic …

The outcome of any important macroeconomic policy change is the net effect of forces
operating on different parts of the economy. A central challenge facing policymakers is how …

We generalize the traditional, static Keynesian cross by deriving an intertemporal Keynesian
cross for the dynamic output response to government spending and taxes in microfounded …

This paper evaluates the role of redistribution in the transmission mechanism of monetary
policy to consumption. Three channels affect aggregate spending when winners and losers …

In recent years, central banks have increasingly turned to forward guidance as a central tool
of monetary policy. Standard monetary models imply that far future forward guidance has …

In this essay, we discuss the emerging literature in macroeconomics that combines
heterogeneous agent models, nominal rigidities, and aggregate shocks. This literature …

In response to the COVID-19 pandemic, large parts of the economy were locked down and,
as a result, households' income risk rose sharply. At the same time, policy makers put …

ABSTRACT We estimate a Heterogeneous-Agent New Keynesian model with sticky
household expectations that matches existing microeconomic evidence on marginal …

We investigate the transmission of monetary policy to household consumption using
administrative data on the universe of households in Norway. On the basis of identified …