We have already learned a lot about the importance of taking into account household heterogeneity, including issues related to demographics and differences in income, debt and wealth.31 Our research will take advantage of microdata to develop a deeper understanding of how household heterogeneity matters for monetary policy transmission. Heterogeneity is also important for reducing our uncertainty about macroeconomic fundamentals.
Elizabeth A Duke: Community voices – promising practices for neighborhood stabilization Speech by Ms Elizabeth A Duke, Member of the Board of Governors of the Federal Reserve System, at the 2011 Federal Reserve Community Affairs Research Conference, Arlington, Virginia, 28 April 2011.