Monetary Policy and Inequality

Asger Lau Andersen, Niels Johannesen, Mia Renee Herløv Jørgensen, José-Luis Peydró

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

4 Citationer (Scopus)
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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.
OriginalsprogEngelsk
TidsskriftThe Journal of Finance
Vol/bind78
Udgave nummer5
Sider (fra-til)2945-2989
ISSN0022-1082
DOI
StatusUdgivet - 2023

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