We study how income inequality affects monetary policy through the inequality-household debt channel. We design a … rate and decreasing bankruptcies during the household's debt boom phase. When inequality meets financial liberalization, a … that inequality may constrain the central bank, even when it is not explicitly targeted. …

We explore the long-run relationship between income risk, inequality, and the macroeconomy in an overlapping … they require for bearing risk, leading to higher measured income and wealth inequality, a lower risk-free real interest … rate, and higher risk premiums. These findings suggest that the factors behind the observed rise in inequality over the …

rise in the unemployment rate, by about 3 percentage points, and income inequality during the pandemic. Our results show …

unexpected monetary easing increases labor income inequality between high and low-skilled workers, and that the interaction … targeting is often the most successful rule in stabilizing measures of earnings inequality even in the presence of shocks which …