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Kenneth C. Griffin Department of Economics Professor Greg Kaplan has received the 2019 Economics in Central Banking Award for his paper "Monetary Policy According to HANK" (with Benjamin Moll and Giovanni Violante). Central Banking journal calls it a work that "boosts the realism of core economic models, delivering important insights into inequality and the transmission of monetary policy." The journal adds, "[while the paper] is not the first piece of research to introduce heterogeneous agents into a New Keynesian framework, the authors adopt an innovative approach that generates crucial insights into monetary policy, viewing the problem through the lens of inequality." Galo Nuño, Head of the Monetary Policy Unit at the Bank of Spain adds, "The paper makes an important contribution … by introducing a model to analyse monetary policy rigorously calibrated using microdata [and] highlighting the relevance of indirect effects of interest rate changes on consumption." The paper was published in the American Economic Review in 2018. Read the full story »

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