How can fiscal policy amplify or dampen monetary policy? @sb_lavender shows how govt debt & fiscal policy shape 3 channels of monetary transmission: a debt service channel, a debt composition channel & a fiscal cyclicality channel
https://t.co/kfgJJhwOJn
#econtwitter
Congratulations Lennart Niermann on winning this year’s Young Economist Prize!
And well done to all the bright young minds who presented their innovative research at this year’s #ECBForum on Central Banking.
Learn more about their research https://t.co/12RLSM76IW
🧵 New @BoE_Research Macro Technical Paper: UK-HANK - a Heterogeneous Agent New Keynesian model built for the UK, for scenario analysis of household sector dynamics and monetary policy counterfactuals. https://t.co/2UVUsviBEI [1/8]
How does consumption-hours complementarity affect aggregate fluctuations? @FlorinBilbiie, @sb_lavender and I show in a new paper that parameterising complementarity and income effects separately allows plausible fiscal multipliers and can resolve two puzzles from the literature.