Semantic Scholar Open Access 2016 280 sitasi

The effects of monetary policy shocks on inequality

Davide Furceri Davide Furceri Prakash Loungani A. Zdzienicka

Lihat Sumber DOI

Abstrak

This paper provides new evidence of the effect of conventional monetary policy shocks on income inequality. We construct a measure of unanticipated changes in policy rates—changes in short-term interest rates that are orthogonal to unexpected changes in growth and inflation news—for a panel of 32 advanced and emerging market countries over the period 1990–2013. Our main finding is that contractionary monetary policy shocks increase income inequality, on average. The effect is asymmetric—tightening of policy raises inequality more than easing lowers it—and depends on the state of the business cycle. We find some evidence that the effect increases with the share of labor income and is mitigated by redistribution policies. Finally, while an unexpected increase in policy rates increases inequality, changes in policy rates driven by an increase in growth and inflation are associated with lower inequality.

Topik & Kata Kunci

Economics

Penulis (4)

Davide Furceri

Prakash Loungani

A. Zdzienicka

Format Sitasi

APA MLA BibTeX

Furceri, D., Furceri, D., Loungani, P., Zdzienicka, A. (2016). The effects of monetary policy shocks on inequality. https://doi.org/10.1016/J.JIMONFIN.2017.11.004

Akses Cepat

Lihat di Sumber doi.org/10.1016/J.JIMONFIN.2017.11.004

Informasi Jurnal

Tahun Terbit: 2016
Bahasa: en
Total Sitasi: 280×
Sumber Database: Semantic Scholar
DOI: 10.1016/J.JIMONFIN.2017.11.004
Akses: Open Access ✓