The Distributive Impact of Monetary Policy: Evidence from the UK

Ballabriga, Fernando C.; Davtyan, Karen

doi:10.2139/ssrn.3001828

Cited by 2 publications

(1 citation statement)

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“…However, the effects are only temporary, as a persistent expansion is inflationary, which requires monetary policy tightening, which in turn increases unemployment, causing poverty to rise again (a mechanism modeled in a dynamic stochastic general equilibrium framework by Areosa and Areosa 2016). The empirical results are somewhat mixed: Furceri, Loungani, and Zdzienicka (2018) find that a contractionary monetary policy shock increases inequality in the short run, while Ballabriga and Davtyan (2017) find that it can lead to a decline in inequality. In the long run, however, credible monetary policy that results in low and stable inflation can improve outcomes for the poor, by providing favorable conditions for economic growth.…”

Section: Conventional Monetary Policymentioning

confidence: 99%

Inflation: Concepts, Evolution, and Correlates

Ha¹,

Иванова²,

Ohnsorge³

et al. 2019

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Conventional Monetary Policymentioning

confidence: 99%

Inflation: Concepts, Evolution, and Correlates

Ha¹,

Иванова²,

Ohnsorge³

et al. 2019

View full text Add to dashboard Cite

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The redistributive politics of monetary policy

Rouanet

Hazlett

2022

Public Choice

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Monetary policy and institutions are far from exempt from political influences. In this paper, we analyze monetary institutions not as being run by either benevolent technocrats or a wealth-maximizing Leviathan, but as the outcome of competition between interest groups trying to capture wealth transfers. We argue that while interest groups gaining from specific monetary policies and institutions can easily identify themselves, losers often cannot. As a result, losers have a more difficult time fighting back, and both the organization of money production and monetary policy are shaped by political competition between rent-seekers. We use our framework to analyze modern developments in monetary policies and institutions, namely (1) the Fed’s reaction to the 2007 financial crisis, (2) the Fed’s reaction to the COVID crisis, and (3) the establishment and development of the euro.

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The Distributive Impact of Monetary Policy: Evidence from the UK

Cited by 2 publications

References 25 publications

Inflation: Concepts, Evolution, and Correlates

Inflation: Concepts, Evolution, and Correlates

The redistributive politics of monetary policy

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