This paper studies the effect of monetary policy on inflation along the income distribution in several euro area …. On the one hand, different consumption shares imply that inflation by high-income households responds less to monetary … its reaction to monetary policy, which imply that inflation by high-income households responds more to monetary policy. …

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

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 …