Distributional role of monetary policy under limited credit access

摘要

The paper explores the redistributive effects of a monetary policy shock in a limited participation framework with limited credit access. Expansionary monetary policy redistributes consumption from traders to non-traders. This redistribution is the largest when only financial market participants have a choice between multiple means of payments while non-participants do not. Welfare analysis reveals that the effectiveness of monetary policy on the economy is the greatest when all agents (financial market participants and nonpartic-ipants) can choose from alternative means of payment in a financially segmented model. The model is calibrated to the US economy for quantitative analysis.