Times of severe economic crisis are, fortunately, rare events. Large recessions, such as the Great Depression of the 1930s or the Great Recession during the late 2000s, have detrimental effects on all economic sectors. ...

This thesis is composed of three self-contained chapters that explore how household heterogeneity shapes macroeconomic outcomes, and how this in turn determines the effects of macroeconomic policies.
The first ...

A central goal of macroeconomic policy is the stabilization of business cycle fluctuations. Stabilization policies, including monetary and fiscal policy, are implemented based on the paradigm that stable economic conditions ...