Auclert, Rognlie, and Straub review a decade of Heterogeneous-Agent New Keynesian (HANK) research through a single canonical model, showing that monetary and balanced-budget fiscal policy have …
Online FirstJournal of Money, Credit and BankingOnline 28 Jul 2026
The conventional division of labour holds that central banks should not target distribution and that fiscal policy, with its targeted instruments, should handle the redistributive consequences of …
Using Flow-of-Funds and Survey-of-Consumer-Finances data to reconstruct market-value nominal asset and liability positions -- including their maturity structure -- across U.S. sectors and household …
PublishedClassicReview of Economic StudiesOnline 26 Jun 2024Published Jul 2025
THANK, a tractable heterogeneous-agent New Keynesian model built around a single statistic for the cyclicality of income inequality, shows that the conditions needed for HANK-style amplification of …
PublishedClassicJournal of Political Economy MacroeconomicsPublished Mar 2023
This paper builds an open-economy heterogeneous-agent New Keynesian (HANK) model in which households differ not only in income and wealth but in their real integration (tradable vs. nontradable …
This paper shows that monetary policy affects aggregate consumption not only through the standard income and substitution channels but also through three redistribution channels -- earnings …
An analytically tractable heterogeneous-agent New Keynesian (HANK) model in which a utilitarian planner's optimal monetary policy departs from the representative-agent benchmark because interest rates …
This paper characterizes optimal monetary policy in a heterogeneous-agent New Keynesian (HANK) model with wage rigidity, showing that a discretionary utilitarian planner's desire to redistribute …
This paper characterizes optimal monetary and fiscal policy rules in a heterogeneous-agent New Keynesian (HANK) model and finds that a "dual mandate" central bank's optimal targeting rule is identical …
PublishedClassicReview of Economic StudiesOnline 23 Mar 2019Published Jan 2020
This paper shows that the standard New Keynesian monetary transmission mechanism -- in which a rate cut raises output and employment -- breaks down in the simplest possible heterogeneous-agent version …
In a two-asset HANK model where households hold liquid bonds and illiquid capital, monetary policy transmits mainly through investment rather than consumption, but a tightening redistributes income …
Online FirstJournal of Money, Credit and BankingOnline 18 Sep 2026
Asking whether unconventional monetary policy works differently from an interest-rate cut has been hard to answer because the two kinds of policy have been measured with different tools, so any …
Most heterogeneous-agent New Keynesian (HANK) models take household portfolios as exogenously fixed. This paper develops a sequence-space method for solving instead for endogenous, risk-hedging …