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MPC Heterogeneity and the Dynamic Response of Consumption to Monetary Policy

By Miguel Ampudia, Russell Cooper, Julia Le Blanc, and Guozhong Zhu

òòò½Íø Journal: Macroeconomics, July 2024

This paper studies how household financial choices affect the impact of monetary policy on consumption. Based on micro data from four major euro area countries, we estimate key structural parameters using a simulated method of moments approach to match mo...