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Research project

Household Finance, Durable Goods and the Impact of Monetary Policy

Monetary policy has become a key instrument for economic stabilization, particularly in Europe.This project explores the role of household financial decisions along with choices regarding durable goods, particularly housing, on the macroeconomic effects of monetary policy.

Despite decades of research and debate, the channels under which monetary policy influences the aggregate economy remain far less than crystal clear. At the same time, monetary policy has become a key instrument for economic stabilization, particularly in Europe. The proposal outlines research that highlights and explores the role of household financial decisions along with choices regarding durable goods, particularly housing, on the macroeconomic effects of monetary policy. The novel element is to jointly integrate household heterogeneity and housing in studying the effects of monetary policy.

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