000			01230nam a22001457a 4500
999			_c523659 _d523659
008			230918b ||||| |||| 00| 0 eng d
100			_aAcharya, S., Challe, E. and Dogra, K. _943757
245			_aOptimal monetary policy according to HANK
260			_aThe American Economic Review
300			_a113(7), Jul, 2023: p. 1741-1782
520			_aWe study optimal monetary policy in an analytically tractable heterogeneous agent New Keynesian model with rich cross-sectional heterogeneity. Optimal policy differs from a representative agent benchmark because monetary policy can affect consumption inequality, by stabilizing consumption risk arising from both idiosyncratic shocks and unequal exposures to aggregate shocks. The trade-off between consumption inequality, productive efficiency, and price stability is summarized in a simple linear-quadratic problem yielding interpretable target criteria. Stabilizing consumption inequality requires putting some weight on stabilizing the level of output, and correspondingly reducing the weights on the output gap and price level relative to the representative agent benchmark.- Reproduced
773			_aThe American Economic Review
906			_aMONETARY POLICY
942			_cAR