Bhattarai, Saroj; Lee, Jae-Won; Yang, Choongryul - In: Quantitative economics : QE ; journal of the … 14 (2023) 3, pp. 817-853
We show that the effectiveness of redistribution policy is tied to how much inflation it generates, and thereby to monetary‐fiscal adjustments that ultimately finance the transfers. In the monetary regime, taxes increase to finance transfers while in the fiscal regime, inflation rises,...