题目：Consumption Heterogeneity and Monetary Policy In Open Economy

主讲人：Kang Shi (CUHK)

主持老师：余淼杰、余昌华（北京大学国家发展研究院）

时间：2021年5月25日（周二）上午10:30-12:00

线下：朗润园致福轩会议室

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摘要：This paper studies how consumption heterogeneity affects the international transmission mechanism of monetary shocks and the choice of optimal monetary policy in open economy. We incorporate two types of agents (Ricardian vs Keynesian) into standard open economy macroeconomic model. We find that, under both PCP and LCP, there are sizeable ranges of household heterogeneity in which monetary policy become ineffective. That is, an interest rate cut leads to the decline of output. We solve for the global optimal monetary policy with household heterogeneity. Interestingly, PPI targeting is still the optimal monetary policy under PCP and can restore the economy to the efficient equilibrium. This because consumption heterogeneity proportionally responds to output gap, and once the output gap is closed, then heterogeneity will not be a concern for monetary authorities. Under LCP, however, due to currency misalignment, output gap cannot be closed, consequently, heterogeneity becomes a new distortion faced by policy makers, this make CPI inflation targeting no longer optimal in most cases. Finally, we show that when fiscal instruments such as import tax and export subsidy are introduced, both currency misalignment and consumption heterogeneity can be eliminated, and central bank will target PPI again under LCP.

主讲人简介：Kang Shi is Associate Professor at Department of Economics, Chinese University of Hong Kong. He obtained Ph.D. degree and M.A. degree at University of British Columbia. He graduated from Zhejiang University with B.A.. His fields of specialization are International Macroeconomics, Monetary Economics and Chinese Economy.