Monetary Policy and Inequality
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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Monetary Policy and Inequality. / Andersen, Asger Lau; Johannesen, Niels; Jørgensen, Mia Renee Herløv; Peydró, José-Luis.
I: The Journal of Finance, Bind 78, Nr. 5, 2023, s. 2945-2989.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Monetary Policy and Inequality
AU - Andersen, Asger Lau
AU - Johannesen, Niels
AU - Jørgensen, Mia Renee Herløv
AU - Peydró, José-Luis
PY - 2023
Y1 - 2023
N2 - 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.
AB - 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.
U2 - 10.1111/jofi.13262
DO - 10.1111/jofi.13262
M3 - Journal article
VL - 78
SP - 2945
EP - 2989
JO - The Journal of Finance
JF - The Journal of Finance
SN - 0022-1082
IS - 5
ER -
ID: 324233878