Heterogeneity in Macroeconomics and its Implications for Monetary Policy

  • Fabian Schnell

Table of contents

About this book


Fabian Schnell develops a model indicating that by keeping real interest rates too low, monetary policy can distort the allocation of resources across firms and potentially delay economic recovery after a recession. This is a new channel of monetary policy that is especially relevant in view of “Quantitative Easing” programs. A second model focuses on the short-term implications of heterogeneously productive firms, showing an acceleration effect of technology shocks. Finally, an empirical investigation of firms’ price-setting behaviors shows that time-dependent factors, relative to state-dependent ones, play a small role with respect to the probability and the size of a price change. All results provide new insights for monetary policy.


  • Introduction: Heterogeneity and Macroeconomics
  • Can Monetary Policy Delay the Reallocation of Capital?
  • Business Cycles and Monetary Policy with Productivity Heterogeneity
  • What Determines Price Changes and the Distribution of Prices? Evidence from the Swiss CPI

    Target Groups
  • Researchers and students in macroeconomics
  • Governmental institutions and central banks
  • Managers of commercial banks, nongovernmental organizations, think tanks

 The Author

Fabian Schnell, Ph.D., works as a research associate at the University of St. Gallen and as a project leader for economic policy at economiesuisse, the Swiss Business Federation.


Geldpolitik Heterogene Firmen Konjunkturzyklen Preissetzungsverhalten Reallocation of Capitel Tiefzinsphase

Authors and affiliations

  • Fabian Schnell
    • 1
  1. 1.Universität St. GallenSt. GallenSwitzerland

Bibliographic information

  • DOI
  • Copyright Information Springer Fachmedien Wiesbaden 2015
  • Publisher Name Springer Gabler, Wiesbaden
  • eBook Packages Business and Economics
  • Print ISBN 978-3-658-09730-1
  • Online ISBN 978-3-658-09731-8
  • Buy this book on publisher's site