The New Keynesian cross
| Autor: | Florin Ovidiu Bilbiie |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Discounting 05 social sciences Monetary policy Keynesian cross Redistribution (cultural anthropology) Forward guidance 0502 economics and business New Keynesian economics Econometrics Economics 050207 economics Income elasticity of demand Finance Aggregate demand 050205 econometrics |
| Zdroj: | Journal of Monetary Economics. 114:90-108 |
| ISSN: | 0304-3932 |
| DOI: | 10.1016/j.jmoneco.2019.03.003 |
| Popis: | The New Keynesian (NK) cross is a graphical and analytical apparatus for heterogeneous-agent (HANK) models expressing key aggregate demand objects—MPC and multipliers—as functions of heterogeneity parameters. It affords analytical insights into monetary, fiscal, and forward guidance multipliers, and replicates the aggregate implications of quantitative HANK. The key parameter—the constrained agents’ income elasticity to aggregate income—depends on fiscal redistribution: when it is larger (smaller) than one, the effects of policies and shocks are amplified (dampened). With uninsurable idiosyncratic uncertainty, this translates intertemporally—through compounding (discounting) in the aggregate Euler equation—into further amplification (dampening) of future shocks. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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