Abstract
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.
Originalsprog | Engelsk |
---|---|
Tidsskrift | The Journal of Finance |
Vol/bind | 78 |
Udgave nummer | 5 |
Sider (fra-til) | 2945-2989 |
ISSN | 0022-1082 |
DOI | |
Status | Udgivet - 2023 |