Michael Beauregard Seminar in Macroeconomics: Exchange Rates and Monetary Policy with Heterogeneous Agents (joint with Adrien Auclert, Matt Rognlie, and Martin Souchier)
Ludwig Straub, Harvard University
Wednesday, March 31, 2021
4:00-5:00 PM
Virtual
Abstract:
Introducing heterogeneous households to a New-Keynesian small open economy model resurrects the real income channel of exchange rates: the rise in import prices from a depreciation lowers households’ real incomes, and leads them to cut back on spending. This channel counteracts the standard expenditure-switching channel of exchange rates, and can result in contractionary devaluations. We study the implications of the real income channel for monetary policy.
* To join the seminar, please contact at econ.events@umich.edu
Introducing heterogeneous households to a New-Keynesian small open economy model resurrects the real income channel of exchange rates: the rise in import prices from a depreciation lowers households’ real incomes, and leads them to cut back on spending. This channel counteracts the standard expenditure-switching channel of exchange rates, and can result in contractionary devaluations. We study the implications of the real income channel for monetary policy.
* To join the seminar, please contact at econ.events@umich.edu
| Building: | Off Campus Location |
|---|---|
| Location: | Virtual |
| Event Type: | Workshop / Seminar |
| Tags: | Economics, seminar |
| Source: | Happening @ Michigan from Department of Economics, Michael Beauregard Seminar in Macroeconomics |
