Should Inequality Factor into Central Banks' Decisions?
Should Inequality Factor into Central Banks' Decisions?
READ MORE...
Volume/Issue:
Volume 2020
Issue 196
Publication date: September 2020
ISBN: 9781513557649
$18.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
| English |
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book
This title contains information about the following subjects.
Click on a subject if you would like to see other titles with the same subjects.
Inflation , Economics- Macroeconomics , WP , consumption inequality , inequality gap , inflation gap , optimal monetary policy , labor income
Summary
Inequality is increasingly a concern. Fiscal and structural policies are well-understood mitigators. However, less is known about the potential role of monetary policy. This paper investigates how inequality matters for monetary policy within a tractable Two-Agent New Keynesian model that captures important dimensions of inequality. We find some support for making inequality an explicit target for monetary policy, particularly if central banks follow standard Taylor rules.
