homogeneous MPC rates. Consumption inequality is countercyclical in this setting and a high degree of leverage amplifies the …

Inequality is increasingly a concern. Fiscal and structural policies are well-understood mitigators. However, less is … known about the potential role of monetary policy. This paper investigates how inequality matters for monetary policy within … a tractable Two-Agent New Keynesian model that captures important dimensions of inequality. We find some support for …

inequality. Simulations show that inequality generally builds up fast even if players have equal starting conditions and house … prices are stable; rising house prices imply more extreme inequality. An extension of the classical game with interest rates … inequality by more than high interest rates. The simulations also demonstrate a first-mover advantage both within a generation …

inequality and welfare. We find that consumption inequality results from differences in agents' decision to access financial … third of observed consumption inequality. Finally, we analyze various policies aimed at increasing financial inclusion and … find that a direct transfer to bank account holders yields the highest welfare and lowest consumption inequality. …