Heterogeneous Agent Macroeconomics
A Tractable New Keynesian Framework
Florin O. Bilbiie
University of Cambridge & CEPR
Forthcoming, MIT Press
Draft Chapters (Preliminary)
I am pleased to share draft chapters of my forthcoming graduate textbook/monograph, circulated with permission from MIT Press.
The material reflects more than two decades of research and teaching on heterogeneous agent macroeconomics. These chapters build on lecture notes and slides used in my PhD and central-bank courses since 2019, and aim to provide a unified and tractable New Keynesian (NK) framework for understanding the macroeconomics of heterogeneity. The book develops a tractable NK framework that incorporates economically meaningful heterogeneity—liquidity constraints, income and wealth inequality, risk, precautionary saving, and distributional policy channels—while remaining analytically transparent and suitable for graduate teaching. It is intended as a bridge between the classical NK model and modern HANK approaches. All chapters are preliminary and incomplete, and comments are warmly welcome. Feel free to use for teaching and research.
Table of Contents (Extended) Slides summarizing whole book
Chapter 7. Inflation According to TANK and HANK
Chapter 9. Liquidity Traps and the Natural Rate (r*) with Inequality