Arbeitspapier
The distributional effects of conventional monetary policy and quantitative easing: Evidence from an estimated DSGE model
This paper compares the distributional effects of conventional monetary policy and quantitative easing (QE) within an estimated open-economy DSGE model of the euro area. The model includes two groups of households: (i) wealthier households, who own financial assets and are able to smooth consumption over time, and (ii) poorer households, who only receive labor and transfer income and live "hand to mouth". We use the model to compare the impact of policy shocks on constructed measures of income and wealth inequality (net disposable income, net asset position, and relative per-capita income). Except for the short term, expansionary conventional policy and QE shocks tend to mitigate income and wealth inequality between the two population groups. In light of the coarse dichotomy of households that abstracts from richer income and wealth dynamics at the individual level, the analysis emphasizes the functional distribution of income.
- ISBN
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978-92-79-93406-3
- Language
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Englisch
- Bibliographic citation
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Series: JRC Working Papers in Economics and Finance ; No. 2018/12
- Classification
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Wirtschaft
Financial Markets and the Macroeconomy
Monetary Policy
Open Economy Macroeconomics
- Subject
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Bayesian estimation
distributional effects
open-economy DSGE model
portfolio rebalancing
quantitative easing
- Event
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Geistige Schöpfung
- (who)
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Hohberger, Stefan
Priftis, Romanos
Vogel, Lukas
- Event
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Veröffentlichung
- (who)
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Publications Office of the European Union
- (where)
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Luxembourg
- (when)
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2018
- DOI
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doi:10.2760/331492
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hohberger, Stefan
- Priftis, Romanos
- Vogel, Lukas
- Publications Office of the European Union
Time of origin
- 2018
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Evaluating interest rate rules in an estimated DSGE model
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