Referierte Aufsätze Web of Science
Christian Bayer, Alexander Kriwoluzky, Gernot J. Müller, Fabian Seyrich
In: Journal of Monetary Economics 147 (2024), 103579, 15 S.
How does a monetary union alter the impact of business cycle shocks at the household level? We develop a Heterogeneous Agent New Keynesian model of two countries (HANK) and show in closed form that a monetary union shifts the adjustment to a shock horizontally across countries, within the brackets of the union-wide wealth distribution, rather than vertically, that is, across the brackets of the union-wide wealth distribution. Calibrating the model to the euro area reveals that a monetary union alters the impact of shocks most strongly in the tails of the wealth distribution but leaves the middle class almost unaffected.
Themen: Verteilung, Ungleichheit, Öffentliche Finanzen, Konjunktur, Geldpolitik
JEL-Classification: F45;E52;D31
Keywords: OCA theory, Two-country model, Monetary union, Monetary policy, Household heterogeneity, Inequality
DOI:
https://doi.org/10.1016/j.jmoneco.2024.103579