In this context, the myopic assumption explored by Gabaix (2017)2 is a welcomed development. Fourth, agents’ heterogeneity relates to the issue of distribution that had been neglected but which, with the use of Heterogenous Agents New Keynesian (HANK) models, helped bring to the fore as exemplified by the recent contribution of Ahn et al.
(2017) at the NBER Macroeconomics Annual Conference.3 It shows how significant the feedback loop is and how models with realistic household heterogeneity fit empirical consumption dynamics better. Fifth, the assumption of a unique steady state is now challenged by the consideration of multiple equilibria, particularly some without full employment as seen in the work by Farmer and collaborators4.