Monetary policy and inequality

Arbeitspapier

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 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 risky assets). Our estimates imply that softer monetary policy increases income inequality.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CEBI Working Paper Series ; No. 09/22

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Monetary policy ; Inequality ; Household heterogeneity ; Risky assets ; Leverage

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Andersen, Asger Lau ; Johannesen, Niels ; Jørgensen, Mia Herløv ; Peydró, José-Luis
• Ereignis: Veröffentlichung
• (wer): University of Copenhagen, Department of Economics, Center for Economic Behavior and Inequality (CEBI)
• (wo): Copenhagen
• (wann): 2022

Weitere Informationen

• Handle: http://hdl.handle.net/10419/268913
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ