(AGENPARL) – mar 28 febbraio 2023 New economic models can help policymakers better understand the effects of their inflation-taming measures []
(Credit: Istock/ FrancesCoch)
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Dear Colleague,
Known as HANK models, this new class of models combine heterogeneous agent models (macroeconomists’ workhorse framework for studying income and wealth distributions) with New Keynesian models (the basic framework for studying monetary policy and movements in aggregate demand), the authors write.
“HANK models impart new lessons about redistribution and the heterogeneous effects of monetary policy and shed new light on traditional central bank objectives of inflation control and output stabilization.”
(Credit: March Cover Pete Reynolds)
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