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Inflation and inequality

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  • Albanesi, Stefania

Abstract

Cross-country evidence on inflation and income inequality suggests that they are positively related. I explore the hypothesis that this correlation is the outcome of a distributional conflict underlying the determination of fiscal policy. I study a bargaining model of the political system in which inflation and inequality are positively correlated due to the relative vulnerability to inflation of low income households.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Monetary Economics.

Volume (Year): 54 (2007)
Issue (Month): 4 (May)
Pages: 1088-1114

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Handle: RePEc:eee:moneco:v:54:y:2007:i:4:p:1088-1114

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Web page: http://www.elsevier.com/locate/inca/505566

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  18. Albanesi, Stefania, 2003. "Optimal and Time-Consistent Monetary and Fiscal Policy with Heterogeneous Agents," CEPR Discussion Papers 3713, C.E.P.R. Discussion Papers.
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  27. Stefania Albanesi, . "The Time Consistency of Optimal Monetary Policy with Heterogeneous Agents," Working Papers 207, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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  1. Inflation and class
    by chris dillow in Stumbling and Mumbling on 2007-01-18 11:38:11
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