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This study investigates whether the Federal Reserve (Fed) should care about inequality. We develop a Heterogeneous Agent New Keynesian (HANK) model, which generates empirically realistic inequalities and business cycle properties observed in the U.S. data. Households in the model economy are...
Persistent link: https://www.econbiz.de/10013218233
Canada, comparing Canada with the United States and reviewing briefly what the literature says about the most likely drivers … of the rise in inequality. Data show that income inequality in Canada increased substantially during the 1980s and first … has been higher than in Canada for the last four decades, with the main differences observed at the high end of the income …
Persistent link: https://www.econbiz.de/10013336143
This paper uses a simple model based on the board game Monopoly to analyze the drivers of house prices and wealth 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...
Persistent link: https://www.econbiz.de/10012268409
In this paper, we study the impact of contractionary monetary policies on income and wealth inequality. By developing an Agent Based-Stock Flow Consistent model, we show that both the sign and magnitude of monetary policy impacts depend on the heterogeneity characterizing income sources across...
Persistent link: https://www.econbiz.de/10015062879
Persistent link: https://www.econbiz.de/10014428607
How much does inequality matter for the business cycle and vice versa? Using a Bayesian likelihood approach, we estimate a heterogeneous-agent New-Keynesian (HANK) model with incomplete markets and portfolio choice between liquid and illiquid assets. The model enlarges the set of shocks and...
Persistent link: https://www.econbiz.de/10012162730
This paper analyses two-way interactions between monetary policy and inequality in selected advanced economies. In the context of a highly accommodative monetary stance over recent years, the analysis focuses on the effects of monetary policy on inequality over the business cycle via its impacts...
Persistent link: https://www.econbiz.de/10011577671
This paper analyzes the impact of conventional and unconventional monetary policy on income inequality in Japan, using hitherto unexplored data from the Japan Household Panel Survey. Empirical evidence shows that expansionary monetary policy in Japan has contributed to diminishing the gender pay...
Persistent link: https://www.econbiz.de/10012117669
redistribution of wealth between households and the government, between nationals and foreigners, and between households within the … properties which is what we explore in this paper. For Canada, we show that the magnitude of redistributions of an unexpected 1 … price level increase is matched by the gains of the government. Even though this redistribution is zero-sum, we observe …
Persistent link: https://www.econbiz.de/10003773003
Persistent link: https://www.econbiz.de/10011740585