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Title: Income Inequality and Monetary Policy: An analysis on the Long Run Relation
Author: Davtyan, Karen
Keywords: Creixement econòmic
Política fiscal
Política monetària
Economic growth
Fiscal policy
Monetary policy
Issue Date: 2016
Publisher: Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
Series/Report no: [WP E-AQR16/04]
[WP E-IR16/04]
Abstract: The distributional effect of monetary policy is estimated in the case of the USA. In order to identify a monetary policy shock, the paper employs contemporaneous restrictions with ex-ante identified monetary policy shocks as well as log run identification. In particular, a cointegration relation has been determined among the considered variables and the vector error correction methodology has been applied for the identification of the monetary policy shock. The obtained results indicate that contractionary monetary policy decreases income inequality in the country. These results could have important implications for the design of policies to reduce income inequality by giving more weight to monetary policy.
Note: Reproducció del document publicat a:
It is part of: IREA – Working Papers, 2016, IR16/04
AQR – Working Papers, 2016, AQR16/04
ISSN: 2014-1254
Appears in Collections:AQR (Grup d’Anàlisi Quantitativa Regional) – Working Papers
Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

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