PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2021 | nr 64 | 40
Tytuł artykułu

Intergenerational redistributive effects of monetary policy

Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
This paper investigates the distributional consequences of monetary policy across generations. We use a life-cycle model with a rich asset structure as well as nominal and real rigidities calibrated to the euro area using both macroeconomic aggregates and microeconomic evidence from the Household Finance and Consumption Survey. We show that the life-cycle profiles of income and asset accumulation decisions are important determinants of redistributive effects of monetary shocks and ignoring them can lead to highly misleading conclusions. The redistribution is mainly driven by nominal assets and labor income, less by real and housing assets. Overall, we find that a typical monetary policy easing redistributes welfare from older to younger generations. (original abstract)
Rocznik
Numer
Strony
40
Opis fizyczny
Twórcy
  • University of Warsaw and Narodowy Bank Polski
  • SGH Warsaw School of Economics; National Bank of Poland
  • SGH Warsaw School of Economics, Poland
Bibliografia
  • Adam, Klaus, Junyi Zhu (2016) Price-Level Changes and The Redistribution of Nominal Wealth Across the Euro Area, Journal of the European Economic Association, 14(4), 871-906.
  • Altavilla, Carlo, Luca Brugnolini, Refet S. Gurkaynak, Roberto Motto, Giuseppe Ragusa (2019) Measuring euro area monetary policy. Journal of Monetary Economics 108, 162-179.
  • Auclert, Adrien (2019) Monetary policy and the redistribution channel, American Economic Review 109(6), 2333-67.
  • Bewley, Truman (1977) The permanent income hypothesis: A theoretical formulation, Journal of Economic Theory 16(2), 252-292.
  • Bielecki, Marcin, Michał Brzoza-Brzezina, Marcin Kolasa (2018) Demographics, monetary policy, and the zero lower bound, NBP Working Papers 284, Narodowy Bank Polski, Economic Research Department.
  • Buiter, Willem H. (2010) Housing wealth isnt wealth. Economics - The Open-Access, Open-Assessment E-Journal 4, 1-29.
  • Bunn, Philip, Andrew Haldane, Alice Pugh (2020) Has monetary policy made you happier? Bank of England working papers 880, Bank of England, July.
  • Carvalho, Carlos, Andrea Ferrero, Fernanda Nechio (2016) Demographics and real interest rates: Inspecting the mechanism. European Economic Review 88(C), 208-226.
  • Chen, Han, Vasco Curdia, and Andrea Ferrero (2012) The Macroeconomic Effects of Largescale Asset Purchase Programmes. Economic Journal 122(564), F289-F315.
  • Chow, Gregory C, An-loh Lin (1971) Best Linear Unbiased Interpolation, Distribution, and Extrapolation of Time Series by Related Series. The Review of Economics and Statistics 53(4), 372-375.
  • Coenen, Guenter, Peter McAdam, Roland Straub (2008) Tax reform and labour-market performance in the euro area: A simulation-based analysis using the New Area-Wide Model. Journal of Economic Dynamics and Control 32(8), 2543-2583.
  • Coibion, Olivier, Yuriy Gorodnichenko, Lorenz Kueng, and John Silvia (2017) Innocent Bystanders? Monetary policy and inequality. Journal of Monetary Economics 88(C), 70-89.
  • Colciago, Andrea, Anna Samarina, and Jakob de Haan (2019) Central Bank Policies And Income And Wealth Inequality: A Survey. Journal of Economic Surveys 33(4), 1199-1231.
  • De Nardi, Mariacristina (2015) Quantitative Models of Wealth Inequality: A Survey. NBER Working Papers 21106, National Bureau of Economic Research, Inc, April.
  • De Nardi, Mariacristina, and Fang Yang (2014) Bequests and heterogeneity in retirement wealth. European Economic Review 72, 182-196.
  • Del Negro, Marco, Marc Giannoni, Christina Patterson (2012) The forward guidance puzzle. Staff Reports 574, Federal Reserve Bank of New York.
  • Doepke, Matthias, Martin Schneider (2006) Inflation and the Redistribution of Nominal Wealth. Journal of Political Economy 114(6), 1069-1097.
  • Fair, Ray C, John B Taylor (1983) Solution and Maximum Likelihood Estimation of Dynamic Nonlinear Rational Expectations Models. Econometrica 51(4), 1169-1185.
  • Fernandez-Villaverde, Jesus, Dirk Krueger (2007) Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data. The Review of Economics and Statistics 89(3), 552-565.
  • Furceri, Davide, Prakash Loungani, Aleksandra Zdzienicka (2018) The effects of monetary policy shocks on inequality. Journal of International Money and Finance 85(C), 168-186.
  • Gali, Jordi (2021) Monetary policy and bubbles in a new Keynesian model with overlapping generations. American Economic Journal: Macroeconomics (Forthcoming) .
  • Gertler, Mark, and Peter Karadi (2015) Monetary Policy Surprises, Credit Costs, and Economic Activity. American Economic Journal: Macroeconomics 7(1), 44-76.
  • Guerello, Chiara (2018) Conventional and unconventional monetary policy vs. households income distribution: An empirical analysis for the Euro Area. Journal of International Money and Finance 85(C), 187-214.
  • Gurkaynak, Refet S, Brian Sack, Eric Swanson (2005) Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements. International Journal of Central Banking 1(1), 55-93.
  • Hafemann, Lucas, Peter Tillmann (2017) The Aggregate and Country-Specific Effectiveness of ECB Policy: Evidence from an External Instruments (VAR) Approach. European Economy - Discussion Papers 2015 - 063, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, July.
  • Hammer, Bernhard (2015) The ownership of assets and the role of age: Age-specific household balance sheets for euro area countries. Agenta Working Paper 9, Agenta.
  • Heathcote, Jonathan, Fabrizio Perri, Giovanni L. Violante (2010) Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006. Review of Economic Dynamics 13(1), 15-51.
  • HFCN (2016) The Household Finance and Consumption Survey: results from the second wave. ECB Statistics Paper 18, European Central Bank.
  • Imrohoroglu, Ayse (1992) The welfare cost of inflation under imperfect insurance. Journal of Economic Dynamics and Control 16(1), 79-91.
  • Jablonowski, Janusz (2018) The taxation of human capital in heterogeneous households for the extended euro area. Ph.D. thesis, SGH Warsaw School of Economics.
  • Kaplan, Greg, Benjamin Moll, Giovanni L. Violante (2018) Monetary Policy According to HANK. American Economic Review 108(3), 697-743.
  • Kuhn, Moritz, Jose-Victor Rios-Rull (2016) 2013 Update on the U.S. Earnings, Income, and Wealth Distributional Facts: A View from Macroeconomics, Federal Reserve Bank of Minneapolis Quarterly Review (April), 1-75.
  • Mertens, Karel, Morten O. Ravn (2012) Empirical Evidence on the Aggregate Effects of Anticipated and Unanticipated US Tax Policy Shocks. American Economic Journal: Economic Policy 4(2), 145-181.
  • Mumtaz, Haroon, Angeliki Theophilopoulou (2017) The impact of monetary policy on inequality in the UK. An empirical analysis. European Economic Review 98(C), 410-423.
  • Nistico, Salvatore (2012) Monetary policy and stock-price dynamics in a DSGE framework, Journal of Macroeconomics 34(1), 126-146.
  • OECD (2008) Growing Unequal? Income Distribution and Poverty in OECD Countries (OECD: Paris).
  • Ouliaris, Sam, Adrian R. Pagan, Jorje Restrepo (2018) Quantitative Macroeconomic Modeling with Structural Vector Autoregressions: An EViews Implementation. Technical Report, Eviews.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171626878

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.