Friday, July 1
Thu
Apr
07

Redistributive Policy Shocks and Monetary Policy with Heterogeneous Agents

Speakers:

Chetan GhateDirector

 
07
April,
2022
03:00 PM to 04:00 PM (IST)

Governments in EMDEs routinely intervene in agriculture markets to stabilize food prices in the wake of adverse shocks. Such interventions usually involve a large increase in the procurement and redistribution of food, which we call a redistributive policy shock. What is the impact of a redistributive policy shock on inflation and the distribution of consumption amongst rich and poor households? We build a tractable two-sector-two-agent NK DSGE model calibrated to the Indian economy. We show that for an inflation targeting central bank, consumer heterogeneity matters for whether monetary policy responses to a variety of shocks raises aggregate welfare or not.

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Date & Time

07-04-2022
03:00 PM
to 04:00 PM (IST)

Location

Anywhere

Event Type

IEG Seminar

Event Category

Speaker(s)

Chetan Ghate

Director