Optimal monetary policy and liquidity with heterogeneous households
University of Lausanne; Sciences Po
New Keynesian model with heterogeneous households, incomplete markets, limited participation in financial markets, money used for self-insurance against idiosyncratic risk, Rotemberg price adjustment costs, and Ramsey optimal monetary policy
intermediate firms: monopolistic competition with Rotemberg price adjustment costs; final firms: perfect competition
Table 5 p.84
Ramsey optimal with Open Market operations, NK cross efficient SS