How much does inequality matter for the business cycle and vice versa? Using a Bayesian likelihood approach, we … income risk and taxes. We find that adding data on inequality does not materially change the estimated shocks and frictions … income inequality. The systematic components of monetary and fiscal policy are important for inequality as well. …

.g. leverage and risky assets). Our estimates imply that softer monetary policy increases income inequality. …

This paper aims at an improved understanding of the relationship between monetary policy and racial inequality. We …