title: Heterogeneous consumers, segmented asset markets, and the effects of monetary policy
creator: Enders, Zeno
subject: ddc-330
subject: 330 Economics
description: This paper examines how segmented asset markets can generate real and nominal effects of monetary policy. I develop a model, in which varieties of consumption bundles are purchased sequentially. Newly injected money thus disseminates slowly through the economy via second-round effects and induces a longer-lasting, non-degenerate wealth distribution. As a result, the demand elasticity differs across consumers, affecting optimal markups chosen by producers. The model predicts a short-term inflation-output trade-off, a liquidity effect, countercyclical markups, and procyclical wages and expenditure dispersion across consumers after monetary shocks. Including a modest degree of real or nominal wage rigidity yields responses that are also quantitatively in line with empirical evidence.  
date: 2012-12
type: Working paper
type: info:eu-repo/semantics/workingPaper
type: NonPeerReviewed
format: application/pdf
identifier: https://archiv.ub.uni-heidelberg.de/volltextserverhttps://archiv.ub.uni-heidelberg.de/volltextserver/14259/1/Enders_2012_dp537.pdf
identifier: DOI:10.11588/heidok.00014259
identifier: urn:nbn:de:bsz:16-heidok-142596
identifier:   Enders, Zeno  (2012) Heterogeneous consumers, segmented asset markets, and the effects of monetary policy.  [Working paper]     
relation: https://archiv.ub.uni-heidelberg.de/volltextserver/14259/
rights: info:eu-repo/semantics/openAccess
rights: http://archiv.ub.uni-heidelberg.de/volltextserver/help/license_urhg.html
language: eng