Monetary policy and inequality

dc.contributor.author Andersen, Asger Lau
dc.contributor.author Johannesen, Niels
dc.contributor.author Jørgensen, Mia
dc.contributor.author Peydró, José-Luis
dc.date.accessioned 2021-03-26T13:35:19Z
dc.date.available 2021-03-26T13:35:19Z
dc.date.issued 2021-03
dc.description.abstract We analyze the distributional effects of monetary policy on income, wealth and consumption. We use administrative household-level data covering the entire population in Denmark over the period 1987-2014 and exploit a long-standing currency peg as a source of exogenous variation in monetary policy. We consistently find that the gains from softer monetary policy in terms of income, wealth and consumption are monotonically increasing in the ex ante income level. The distributional effects reflect systematic differences in exposure to the various channels of monetary policy, especially non-labor channels (e.g. leverage and assets). Our estimates imply that softer monetary policy increases income inequality by raising income shares at the top of the income distribution and reducing them at the bottom.ca
dc.format.mimetype application/pdf*
dc.identifier.uri http://hdl.handle.net/10230/46967
dc.language.iso engca
dc.rights.accessRights info:eu-repo/semantics/openAccessca
dc.subject.other Monetary policyca
dc.subject.other Inequalityca
dc.subject.other Household heterogeneityca
dc.subject.other Assetsca
dc.subject.other Leverageca
dc.title Monetary policy and inequalityca
dc.type info:eu-repo/semantics/workingPaperca

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