Download or read book Distributional Effects of Monetary Policy written by Valentina Bonifacio and published by International Monetary Fund. This book was released on 2021-07-30 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: As central banks across the globe have responded to the COVID-19 shock by rounds of extensive monetary loosening, concerns about their inequality impact have grown. But rising inequality has multiple causes and its relationship with monetary policy is complex. This paper highlights the channels through which monetary policy easing affect income and wealth distribution, and presents some quantitative findings about their importance. Key takeaways are: (i) central banks should remain focused on macro stability while continuing to improve public communications about distributional effects of monetary policy, and (ii) supportive fiscal policies and structural reforms can improve macroeconomic and distributional outcomes.

Download or read book Innocent Bystanders Monetary Policy and Inequality in the U S written by Mr.Olivier Coibion and published by International Monetary Fund. This book was released on 2012-08-01 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the United States since 1980. Contractionary monetary policy actions systematically increase inequality in labor earnings, total income, consumption and total expenditures. Furthermore, monetary shocks can account for a significant component of the historical cyclical variation in income and consumption inequality. Using detailed micro-level data on income and consumption, we document the different channels via which monetary policy shocks affect inequality, as well as how these channels depend on the nature of the change in monetary policy.

Download or read book The Distributional Consequences of Monetary Policy written by Domaç and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Distributional Consequences of Monetary Policy written by Ilker Domac and published by . This book was released on 2016 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Distributional Consequences of Monetary Policy written by Ilker Domaç and published by World Bank Publications. This book was released on 1999 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Policymakers in Malaysia should weigh the distributional consequences of policy actions. They should also consider measures to alleviate the disproportionate impact that market imperfections have on small and medium-size industries.

Download or read book The Distributional Effects of Environmental Policy written by Johnstone Nick and published by OECD Publishing. This book was released on 2006-02-23 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book builds upon existing literature to simultaneously examine disparities in the distribution of environmental impacts of environmental policy and in the distribution of financial effects among households.

Download or read book The Distributional Effects of Climate Policies written by ZACHMANN. GUSTAV GEORG (FREDRIKSSON. GREGORY, CLAEYS.) and published by . This book was released on 2018-12-20 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Policymakers will not accept forceful decarbonisation policies if they lead to visibly increasing inequality within their societies. The distributive effects of climate policies need to be addressed. This report provides a selective review of recent academic literature and experience on the distributional effects of climate policies.

Download or read book The Distributional Impact of Taxes and Transfers written by Gabriela Inchauste and published by World Bank Publications. This book was released on 2017-09-19 with total page 402 pages. Available in PDF, EPUB and Kindle. Book excerpt: The World Bank has partnered with the Commitment to Equity Institute at Tulane University to implement their diagnostic tool—the Commitment to Equity (CEQ) Assessment—designed to assess how taxation and public expenditures affect income inequality, poverty, and different economic groups. The approach relies on comprehensive fiscal incidence analysis, which measures the contribution of each individual intervention to poverty and inequality reduction as well as the combined impact of taxes and social spending. The CEQ Assessment provide an evidence base upon which alternative reform options can be analyzed. The use of a common methodology makes the results comparable across countries. This volume presents eight country studies that examine the distributional effects of individual programs and policy measures—and the net effect of each country’s mix of policies and programs. These case studies were produced in the context of Bank policy dialogue and have since been used to propose alternative reform options.

Download or read book Distributional Consequences of Conventional and Unconventional Monetary Policy written by Marcin Bielecki and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Distributional Consequences of Real Exchange Rate Adjustment written by Mr.Vladimir Klyuev and published by International Monetary Fund. This book was released on 2003-06-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper focuses on distributional consequences of macroeconomic adjustment. The preferences of economic agents over the level of the real exchange rate derived from standard models are monotonic, with agents favoring either an infinitely appreciated or depreciated rate. To generate less extreme preferences, a model is presented where appreciation would depress economic activity, while a large depreciation would hit the tradable sector by limiting the availability of labor, offsetting the favorable price effect. The model is in the spirit of the dependent economy model, but built on explicit microfoundations. The results can be used to analyze political economy aspects of macroeconomic adjustment.

Download or read book The Distributional Implications of the Impact of Fuel Price Increases on Inflation written by Mr. Kangni R Kpodar and published by International Monetary Fund. This book was released on 2021-11-12 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.

Download or read book Distributional Consequences of Fiscal Consolidation and the Role of Fiscal Policy written by Jaejoon Woo and published by International Monetary Fund. This book was released on 2013-09-17 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2007-09 Great Recession has led to an unprecedented increase in public debt in many countries, triggering substantial fiscal adjustments. What are the distributional consequences of fiscal austerity measures? This is an important policy question. This paper analyzes the effects of fiscal policies on income inequality in a panel of advanced and emerging market economies over the last three decades, complemented by a case study of selected consolidation episodes. The paper shows that fiscal consolidations are likely to raise inequality through various channels including their effects on unemployment. Spending-based consolidations tend to worsen inequality more significantly, relative to tax-based consolidations. The composition of austerity measures also matters: progressive taxation and targeted social benefits and subsidies introduced in the context of a broader decline in spending can help offset some of the adverse distributional impact of consolidation. In addition, fiscal policy can favorably influence long-term trends in both inequality and growth by promoting education and training among low- and middle-income workers.

Download or read book The Distributional Effects of Disinflationary Monetary Policy written by Willem Thorbecke and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macroeconomists traditionally focus on the aggregate consequences of disinflationary monetary policy, not its distributional effects. This paper considers these distributional effects. The evidence indicates that contractionary monetary policy harms interest rate-sensitive industries by depressing output and employment and increasing the cost of capital. These industries are further hurt as declines in output and increases in the cost of capital reduce capital formation. The evidence also indicates that tight monetary policy in 1981-82 decimated the earnings of small firms. These earnings have remained at low levels since then. Finally, the evidence indicates that wealth holders are helped by contractionary monetary policy as interest rates increase and inflation declines. Before tightening monetary policy to pursue these benefits, however, policy makers should weigh carefully the damage that they will inflict on interest-sensitive sectors and small firms.

Download or read book Distributional Consequences of Monetary Policy in Emerging Market Economies and the Role of Food Prices written by Kuhelika De and published by . This book was released on 2017 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation is devoted to studying the distributional consequences of monetary policy on household food consumption in emerging market economies, and the channel through which these distributional eƠ̐0ects occur. The main contribution of my dissertation is Ơ̐1nding evidence of the presence a "food price channel" of monetary policy in emerging market economies (EME's). Three essays examine the impact of the "food price channel" of monetary policy on the distribution of food consumption in EME's. Chapters 2 and 3 of the dissertation, titled "The Food Price Channel: EƠ̐0ects of Monetary Policy on the Poor in India" and "Monetary Policy and Distribution of Food Consumption in China: The Role of Food Prices" estimate the dynamic eƠ̐0ects of monetary policy shocks on relative food prices and the distribution of food consumption in two of the fastest growing emerging market economies-India and China respectively, by relying on household survey data and time series methods. Results for India and China show that the relative price of food responds positively, and the distribution of food consumption responds negatively to expansionary monetary policy shocks, providing evidence in favor of the impact of a "food price channel" of monetary policy on the distribution of food consumption in both economies. However, in India while expansionary monetary shocks via the "food price channel" appear to increase inequality, in China expansionary monetary shocks via the same channel are found to reduce inequality. Chapter 4 titled "The Food Price Channel in India Revisited" reinvestigates the impact of the "food price channel" of monetary policy on the distribution of food consumption in India, using a two sector dynamic stochastic general equilibrium (DSGE) model with Ơ̐2exible food and sticky non-food prices, and heterogeneous agents who diƠ̐0er in their proximity to subsistence food threshold. Results from the DSGE analysis point to expansionary monetary shocks having heterogeneous negative eƠ̐0ects on food consumption which reduce food consumption at the lower end of the distribution much less than that at the upper end, thus reporting a decline in inequality from the "food price channel."

Download or read book The Poverty and Distributional Impacts of Carbon Pricing Channels and Policy Implications written by Baoping Shang and published by International Monetary Fund. This book was released on 2021-06-25 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Addressing the poverty and distributional impacts of carbon pricing reforms is critical for the success of ambitious actions in the fight against climate change. This paper uses a simple framework to systematically review the channels through which carbon pricing can potentially affect poverty and inequality. It finds that the channels differ in important ways along several dimensions. The paper also identifies several key gaps in the current literature and discusses some considerations on how policy designs could take into account the attributes of the channels in mitigating the impacts of carbon pricing reforms on households.

Download or read book Price Stickiness Along the Income Distribution and the Effects of Monetary Policy written by Javier Cravino and published by . This book was released on 2018 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: We document that the prices of the goods consumed by high-income households are more sticky and less volatile than those of the goods consumed by middle-income households. This suggests that monetary shocks can have distributional consequences by affecting the relative prices of the goods consumed at different points on the income distribution. We use a Factor-Augmented VAR (FAVAR) model to show that, following a monetary policy shock, the estimated impulse responses of high-income households' consumer price indices are 22% lower than those of the middle-income households. We then evaluate the macroeconomic implications of our empirical findings in a quantitative New-Keynesian model featuring households that are heterogeneous in their income and consumption patterns, and sectors that are heterogeneous in their frequency of price changes. We find that: (i) the distributional consequences of monetary policy shocks are large and similar to those in the FAVAR model, and (ii) greater income inequality increases the effectiveness of monetary policy, although this effect is modest for realistic changes in inequality.

Download or read book Distributional Consequences of Conventional and Unconventional Monetary Policy written by Marcin Bielecki (ekonomia) and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: