Optimal Monetary Policy and Liquidity with Heterogeneous Households （Florin O. Bilbiie , Xavier Ragot，2021 RED）
A liquidity-insurance motive for monetary policy operates when heterogeneous households use government-provided liquidity (“money”) to insure idiosyncratic risk. In our tractable sticky-price model this changes the central bank’s trade-off by adding a linear benefit of insurance in the second-order approximation to aggregate welfare. Inflation volatility hinders the consumption volatility of constrained households as a side-effect of liquidity-insuring them; but price stability has quantitatively significant welfare costs only when monopolistic rents are also large, which indicates a complementarity between imperfect insurance and New-Keynesian distortions.
Helicopter drops are welfare-superior to open-market operations to achieve insurance, but quantitatively their benefit is surprisingly small.
王忏（金融学院）
赵军柱（创新发展学院中国经济与管理研究院）
2024年3月29日（周四），晚上19:00-22：00
创新发展学院中国经济与管理研究院、金融学院联合主办
