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Monetary growth and wealth inequality

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  • Bagchi, Sutirtha
  • Curran, Michael
  • Fagerstrom, Matthew J.

Abstract

We construct a global panel data set to examine the relationship between monetary growth and wealth inequality. Dynamic panel estimates suggest that both overall and inherited wealth inequality increase with growth in the base money supply. These results hold for countries with at least one billionaire and for OECD countries.

Suggested Citation

  • Bagchi, Sutirtha & Curran, Michael & Fagerstrom, Matthew J., 2019. "Monetary growth and wealth inequality," Economics Letters, Elsevier, vol. 182(C), pages 23-25.
  • Handle: RePEc:eee:ecolet:v:182:y:2019:i:c:p:23-25
    DOI: 10.1016/j.econlet.2019.05.036
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    References listed on IDEAS

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    Cited by:

    1. Anastasios Evgenidis & Apostolos Fasianos, 2019. "Monetary Policy and Wealth Inequalities in Great Britain: Assessing the role of unconventional policies for a decade of household data," Papers 1912.09702, arXiv.org.
    2. Maryjane Chigbo & Oluwatosin Adeniyi & Samuel Orekoya, 2020. "Econometric analysis of the deficit financing options-growth inclusiveness nexus in India and Nigeria," Indian Economic Review, Springer, vol. 55(2), pages 313-338, December.
    3. José Alves & Tomás Silva, 2020. "An Empirical Assessment of Monetary Policy Channels on Income and Wealth Disparities," Working Papers REM 2020/0144, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.

    More about this item

    Keywords

    Cantillon effect; Wealth inequality; Money nonneutrality;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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