eprintid: 14259
rev_number: 27
eprint_status: archive
userid: 2744
dir: disk0/00/01/42/59
datestamp: 2012-12-13 11:24:47
lastmod: 2016-01-15 09:18:29
status_changed: 2012-12-13 11:24:47
type: workingPaper
metadata_visibility: show
creators_name: Enders, Zeno
title: Heterogeneous consumers, segmented asset markets, and the effects of monetary policy
subjects: 330
divisions: 181000
keywords: Segmented Asset Markets , Monetary Policy , Countercyclical Markups , Liquidity Effect , Expenditure Dispersion 
abstract: 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
id_scheme: DOI
id_number: 10.11588/heidok.00014259
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0537
ppn_swb: 1651940843
own_urn: urn:nbn:de:bsz:16-heidok-142596
language: eng
bibsort: ENDERSZENOHETEROGENE201212
full_text_status: public
series: Discussion Paper Series / University of Heidelberg, Department of Economics
volume: 0537
pages: 32
citation:   Enders, Zeno  (2012) Heterogeneous consumers, segmented asset markets, and the effects of monetary policy.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/14259/1/Enders_2012_dp537.pdf