Central banks are very interested in investigating questions surrounding inequality and its relationship with monetary policy. This is arguably for very good reasons. First of all, inequality has become a central issue in many countries. It is therefore important to ask how central-bank policies ...

Following the influential work of Christiano, Eichenbaum, and Evans (2005) and Smets and Wouters (2003), many central banks are building and estimating dynamic stochastic general equilibrium (DSGE) models with nominal rigidities and are using them for policy analysis. This new generation of sticky ...