This paper measures how the inflation-unemployment tradeoff associated with monetary policy varies with both the sign of the monetary intervention (easing versus tightening) and the state of the …
By building three nested HANK economies and then constructing a deliberately simple two-agent counterpart for each, this paper argues that what household heterogeneity does to aggregate output can be …
This paper asks how much of the HANK literature's message about aggregate behaviour survives in a far simpler model, and answers by first identifying exactly what heterogeneity does.