A growing body of economic research emphasises the “profound impact” that various forms of heterogeneity can have on the monetary transmission mechanism, a paper published by the Bank of Canada finds.

Heterogeneity and monetary policy: a thematic review by Felipe Alves et al explores the many ways that economists have come to view heterogeneity as important to aggregate economic outcomes. The authors say the combined influence of advances in data, methodologies and technology – namely computers