%0 Generic
%A Enders, Zeno
%D 2012
%F heidok:14259
%K Segmented Asset Markets , Monetary Policy , Countercyclical Markups , Liquidity Effect , Expenditure Dispersion 
%R 10.11588/heidok.00014259
%T Heterogeneous consumers, segmented asset markets, and the effects of monetary policy
%U https://archiv.ub.uni-heidelberg.de/volltextserver/14259/
%V 0537
%X 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.