Arbeitspapier
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 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.
- Language
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Englisch
- Bibliographic citation
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Series: Bonn Econ Discussion Papers ; No. 08/2010
- Classification
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Wirtschaft
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
Money Supply; Credit; Money Multipliers
- Subject
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Segmented Asset Markets
Monetary Policy
Countercyclical Markups
Liquidity Effect
Limited Participation
Geldpolitik
Transmissionsmechanismus
Agent-based Model
Konsumentenverhalten
Kapitalanlage
Vermögenseffekt
Extensives Spiel
Mark-up Pricing
Inflation
Konjunktur
Theorie
- Event
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Geistige Schöpfung
- (who)
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Enders, Zeno
- Event
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Veröffentlichung
- (who)
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University of Bonn, Bonn Graduate School of Economics (BGSE)
- (where)
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Bonn
- (when)
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2010
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Enders, Zeno
- University of Bonn, Bonn Graduate School of Economics (BGSE)
Time of origin
- 2010