Researchers explore link between rates and consumption in new model

ecb-frankfurt-new

A working paper published by the European Central Bank (ECB) offers a new assessment of the importance of direct and indirect channels through which interest rates effect household consumption.

In Monetary policy according to HANK, Greg Kaplan, Benjamin Moll and Giovanni Violante examine the transmission mechanism of monetary policy for household consumption in a heterogeneous agent New Keynesian (HANK) model.

In the model, monetary policy affects aggregate consumption "primarily through

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.