000			01099nam a22001457a 4500
999			_c520367 _d520367
008			220912b ||||| |||| 00| 0 eng d
100			_aKreamer, Jonathan _933988
245			_aEectoral heterogeneity and monetary policy
260			_aAmerican Economic Journal: Macroeconomics
300			_a14(2), Apr, 2022: p.123-159
520			_aSince sectors differ in their sensitivity to interest rates, monetary policy produces inefficient sectoral fluctuations. In a model with sectoral heterogeneity, I show that policymakers should weight sectors proportionally to their interest elasticities, account for dynamic demand effects from durable goods, and systematically utilize forward guidance to reduce sectoral volatility. A calibrated model confirms these recommendations and finds that neglecting sectoral volatility produces substantial welfare losses. The best-performing policy rule stabilizes a sectorally weighted measure of inflation, plus lags of past durable inflation. – Reproduced
773			_aAmerican Economic Journal: Macroeconomics
906			_aMONETARY POLICY
942			_cAR