Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 18, 2023 erstellt
Beschreibung:
This paper studies the conduct of monetary policy in presence of heterogeneous exposure to energy price shocks between the employed and the unemployed, as it is documented by data from the euro area Consumer Expectation Survey. I account for this evidence into a tractable Heterogeneous-Agent New Keynesian (HANK) model with Search and Matching (S&M) frictions in the labor market and non-homothetic household preferences: energy price shocks directly impact producers and consumers, weighing more on the jobless due to non-homotheticity and the inability to perfectly insure against unemployment spells. Rising energy prices induce a novel precautionary saving motive: the consumption losses upon unemployment are increased, strengthening the drag on aggregate demand. Households' heterogeneous exposure to the shock induces an endogenous trade-off for monetary policy, whose optimal response involves partly accommodating core inflation so as to indirectly sustain employment, and prevent workers from becoming more exposed to the shock through unemployment