How much does inequality matter for the business cycle and vice versa? Using a Bayesian likelihood approach, we … income risk and taxes. We find that adding data on inequality does not materially change the estimated shocks and frictions … income inequality. The systematic components of monetary and fiscal policy are important for inequality as well. …

Our paper picks up the current controversial debate about increasing (income) inequality due to recent monetary policy … policy to overall income inequality works we pick up two major channels dominant in literature: The employment channel and … address and mitigate harmful effects of increased market in- come inequality. …

on aggregate demand is amplified in this setup by inequality between saver and hand-to-mouth households. The …

reduction in US corporate tax rates can generate the joint evolution of rising wealth inequality, rising capital-output ratio …

this return inequality? I study capital taxation in an economy in which return rates endogenously correlate with wealth … lower marginal tax rates. The endogeneity of returns generates an inequality multiplier effect between wealth and its …