Five facts about the distributional income effects of monetary policy

Arbeitspapier

We use Swedish administrative individual-level data to document five facts about the distributional income effects of monetary policy. (i) The effects of monetary policy shocks are U-shaped with respect to the income distribution-i.e., expansionary shocks increase the incomes of high- and low-income individuals relative to middle-income individuals. (ii) The large effects in the bottom are accounted for by the labor-income response and (iii) those in the top by the capital-income response. (iv) The heterogeneity in the labor-income response is due to the earnings heterogeneity channel, whereas (v) that in the capital-income response is due to the income composition channel.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Sveriges Riksbank Working Paper Series ; No. 403

Classification and Topics

• Classification: Wirtschaft ; Large Data Sets: Modeling and Analysis ; Business Fluctuations; Cycles ; Monetary Policy
• Subject: Monetary policy ; income inequality ; heterogeneous agents ; administrative data

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Amberg, Niklas ; Jansson, Thomas ; Klein, Mathias ; Rogantini Picco, Anna
• Event: Veröffentlichung
• (who): Sveriges Riksbank
• (where): Stockholm
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/251301
• Last update: 10.03.2025, 11:43 AM CET