The UK has experienced a dramatic increase in earnings and income inequality over the past four decades. We use … policy shocks lead to a deterioration in earnings, income and consumption inequality and contribute to their fluctuation. The … response of income and consumption at different quantiles suggests that contractionary policy has a larger negative effect on …

The UK has experienced a dramatic increase in earnings and income inequality over the past four decades. We use … monetary policy shocks lead to a deterioration in earnings and income inequality and contribute to its fluctuation. Our …