The redistributive effects of monetary policy

Arbeitspapier

We introduce a model of the economy as a social network. Two agents are linked to the extent that they transact with each other. This generates well-defined topological notions of location, neighborhood and closeness. We investigate the implications of our model for monetary economics. When a central bank increases the money supply, it must inject the money somewhere in the economy. We demonstrate that the agent closest to the location where money is injected is better off, and the one furthest is worse off. This redistribution channel is independent from the ones previously noted in the literature. Symmetrically, any decrease in the money supply redistributes purchasing power in the other direction. We also outline the testable implications of our model.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 44

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Money and Interest Rates: General ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General
• Thema: money ; redistribution ; policy ; central bank ; social network ; topology ; Geldpolitik ; Verteilungswirkung ; Geldmenge ; Kaufkraft ; Tauschwirtschaft ; Agentenbasierte Modellierung ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Ledoit, Olivier
• Ereignis: Veröffentlichung
• (wer): University of Zurich, Department of Economics
• (wo): Zurich
• (wann): 2011

Weitere Informationen

• DOI: doi:10.5167/uzh-51548
• Handle: http://hdl.handle.net/10419/77593
• Letzte Aktualisierung: 01.10.2036, 13:14 MESZ