Innocent bystanders? Monetary policy and inequality in the US

Arbeitspapier

We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the United States since 1980. Contractionary monetary policy actions systematically increase inequality in labor earnings, total income, consumption and total expenditures. Furthermore, monetary shocks can account for a significant component of the historical cyclical variation in income and consumption inequality. Using detailed micro-level data on income and consumption, we document the different channels via which monetary policy shocks affect inequality, as well as how these channels depend on the nature of the change in monetary policy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 6633

Classification and Topics

• Classification: Wirtschaft
• Subject: monetary policy ; income inequality ; consumption inequality ; Geldpolitik ; Schock ; Gesamtwirtschaftlicher Konsum ; Soziale Ungleichheit ; Einkommensverteilung ; Schätzung ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Coibion, Olivier ; Gorodnichenko, Yuriy ; Kueng, Lorenz ; Silvia, John
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/62442
• Last update: 10.03.2025, 11:45 AM CET