This is a joint event with the ESM and the Department of Finance of the University of Luxembourg.
ESM-Uni.lu Lunch Seminar Prof. Federica Romei, University of Oxford
Speaker: Prof. Federica Romei
University of Oxford
DATE: Tuesday, 10 October 2023
TIME: 12.30 – 14.00
Abstract:
We argue that demand composition between tradable and non-tradable goods and services affects monetary policy transmission. We document at the micro level that within Eurozone countries, richer households allocate a greater share of their consumption basket to non-tradable goods. At the aggregate level, we show that non-tradable goods account for a larger share of total consumption in countries with higher income inequality. Finally, we show that output responses to identified monetary policy shocks are larger for economies with lower non-tradable consumption shares. We rationalize our micro and macro findings using a small open-economy heterogeneous-agent model with non-homothetic preferences. We then study the implications for optimal stabilization policy.
Registration is mandatory
Venue:
European Stability Mechanism
6a Circuit de La Foire Internationale
1947 Luxembourg
Please note that cold lunch will be provided for registered participant (12h-12h30)
