Heterogeneous consumers, segmented asset markets and the real effects of monetary policy

• Verfasst von: Enders, Zeno [VerfasserIn]
• Titel: Heterogeneous consumers, segmented asset markets and the real effects of monetary policy
• Verf.angabe: Zeno Enders
• Jahr: 2020
• Umfang: 26 S.
• Titel Quelle: Enthalten in: The economic journal
• Ort Quelle: Oxford : Oxford University Press, 1891
• Jahr Quelle: 2020
• Band/Heft Quelle: 130(2020), 628, Seite 1031-1056
• ISSN Quelle: 1468-0297
• DOI: doi:10.1093/ej/ueaa010
• Datenträger: Online-Ressource
• Sprache: eng
• Sach-SW: segmented asset markets
• Sach-SW: monetary policy
• Sach-SW: countercyclical markups
• Sach-SW: liquidity effect
• Sach-SW: heterogenous money holdings
• Form-SW: Aufsatz in Zeitschrift
• K10plus-PPN: 1703212193

Abstract

This article proposes a novel mechanism by which changes in the distribution of money holdings have real aggregate effects. I develop a flexible-price model of segmented asset markets in which monetary policy influences the aggregate demand elasticity via heterogenous money holdings. Because varieties of consumption bundles are purchased sequentially, newly injected money disseminates slowly throughout the economy via second-round effects. The model predicts a short-term inflation-output trade-off, a liquidity effect, countercyclical markups, and pro-cyclical wages after monetary shocks. Among other correlations of financial variables, it also reproduces the empirical, negative relationship between changes in the money supply and markups.