In this essay, we discuss the emerging literature in macroeconomics that combines
heterogeneous agent models, nominal rigidities, and aggregate shocks. This literature …

This paper examines the role of refinancing channel and the mortgage market structure for
the transmission of monetary policy to consumption. First, I document heterogeneous …

Using household survey data for the US and the UK, we show that the aggregate response
of consumption to interest rate changes is driven by households with a mortgage. Outright …

We argue that the time-varying regional distribution of housing equity influences the
aggregate consequences of monetary policy through its effects on mortgage refinancing …

How much ability does the Fed have to stimulate the economy by cutting interest rates? We
argue that the presence of substantial debt in fixed-rate, prepayable mortgages means that …

The adoption as policy models by central banks of representative agent New Keynesian
dynamic stochastic general equilibrium models has been widely criticised, including for their …

A set of newly-added questions in the 2011–2014 Bank of England/NMG Consulting Survey
reveals that British households tend to change their consumption by significantly more in …

We examine the effect of monetary policy on household spending when households are
indebted and interest rates on outstanding loans are linked to short-term interest rates …

We argue that the time-varying regional distribution of housing equity influences the
aggregate consequences of monetary policy through its effects on mortgage refinancing …

We study the severity of liquidity constraints in the US housing market using a life-cycle
model with uninsurable idiosyncratic risks in which houses are illiquid, but agents can …