rule with an explicit inequality target can be welfare improving, even if inequality becomes volatile. Second, there is an … economic welfare and stabilize inequality at the same time …This study investigates whether the Federal Reserve (Fed) should care about inequality. We develop a Heterogeneous …

Inequality is increasingly a concern. Fiscal and structural policies are well-understood mitigators. However, less is … known about the potential role of monetary policy. This paper investigates how inequality matters for monetary policy within … a tractable Two-Agent New Keynesian model that captures important dimensions of inequality. We find some support for …