Paper #1761

Título:

Monetary policy and inequality

Autores:

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

Fecha:

Diciembre 2020

Resumen:

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 the 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 assets). Our estimates imply that softer monetary policy increases income inequality by raising income shares at the top of the income distribution and reducing them at the bottom.

Palabras clave:

Monetary policy, inequality, household heterogeneity

Códigos JEL:

E2, E4, E5, G2, G1, G5

Área de investigación:

Finanzas y Contabilidad

Publicado en:

Journal of Finance, forthcoming

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