Выбор редакции

MPCs, MPEs and Multipliers: A Trilemma for New Keynesian Models -- by Adrien Auclert, Bence Bardóczy, Matthew Rognlie

We establish an impossibility result for New Keynesian models with a frictionless labor market: these models cannot simultaneously match plausible estimates of marginal propensities to consume (MPCs), marginal propensities to earn (MPEs), and fiscal multipliers. A HANK model with sticky wages provides a solution to this trilemma.