Monetary transmission with income risk*
研究了经济衰退期间收入风险上升如何影响货币政策传导，发现收入风险会削弱利率变化的替代效应但放大工资变化的间接收入效应，在一般均衡中使货币政策对消费的传导效果减弱约11%。
Abstract In periods of distress, observed and perceived income risk tends to rise. Does this heightened income risk affect monetary transmission? This paper first shows that in partial equilibrium, heightened income risk dampens the substitution effect of interest rate changes but amplifies the indirect income effect of wage changes. The effects are sizable in partial equilibrium. An increase in income risk consistent with heightened risk during recessions affects interest rate and wage responses by around one‐third. However, because income risk dampens the effects of interest rate changes but amplifies the effects of wage changes, its effect is weaker in general equilibrium, dampening monetary transmissions to consumption by around 11 percent.