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The interaction of debt and economic performance has been getting more at-tention over the last few years. However, models making provision for debt are still out-numbered by models completely ignoring it. This paper is the first one to analyze therelationship between household debt (in the form...
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.g. leverage and risky assets). Our estimates imply that softer monetary policy increases income inequality. …
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monetary and fiscal policies become sharper as the level of income inequality increases. …
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Empirical studies have pointed out that monetary policy may significantly affect income and wealth inequality. To … monetary policy increases inequality, even though this effect may differ across groups of households. This may put into …
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