A Note on Unconventional Monetary Policy in HANK
This note contains supplementary material to Kaplan, Moll, and Violante (2016) In the rst part, we analyze the eectiveness of forward guidance in HANK. We show that, in contrast to representative agent economies, the announcement of a future interest rate cut in our baseline economy has a smaller impact on current consumption than an equal size contemporaneous cut. We explain the role of hand to mouth households and