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The redistributive consequences of monetary policy


  • Makoto Nakajima


Monetary policy is not intended to benefit one segment of the population at the expense of another by redistributing income and wealth. But as Makoto Nakajima explains, it is probably impossible to avoid such redistributive consequences.

Suggested Citation

  • Makoto Nakajima, 2015. "The redistributive consequences of monetary policy," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 9-16.
  • Handle: RePEc:fip:fedpbr:00021

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    Blog mentions

    As found by, the blog aggregator for Economics research:
    1. Bancos Centrales y Distribución de Ingreso
      by Marc Hofstetter Gascon in Foco Económico on 2019-11-26 21:00:14


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Areosa, Waldyr Dutra & Areosa, Marta B.M., 2016. "The inequality channel of monetary transmission," Journal of Macroeconomics, Elsevier, vol. 48(C), pages 214-230.
    2. Farhad Taghizadeh‐Hesary & Naoyuki Yoshino & Sayoko Shimizu, 2020. "The impact of monetary and tax policy on income inequality in Japan," The World Economy, Wiley Blackwell, vol. 43(10), pages 2600-2621, October.
    3. Marta B. M. Areosa & Waldyr D. Areosa & Pierre Monnin, 2016. "How Would Monetary Policy Look Like if John Rawls Had Been Hired as a Chairman of the Fed?," Working Papers Series 447, Central Bank of Brazil, Research Department.
    4. Hotchkiss, Julie L. & Moore, Robert E. & Rios-Avila, Fernando, 2020. "Cost of policy choices: A microsimulation analysis of the impact on family welfare of unemployment and price changes," Journal of Macroeconomics, Elsevier, vol. 63(C).
    5. Robert Jarrow & Sujan Lamichhane, 2020. "The Effects of Yield Control Monetary Policy: A Helicopter Money Drop to Financial Institutions," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-38, March.
    6. Goodness C. Aye & Matthew W. Clance & Rangan Gupta, 2019. "The effectiveness of monetary and fiscal policy shocks on U.S. inequality: the role of uncertainty," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(1), pages 283-295, January.
    7. Bernd Hayo & Florian Neumeier, 2021. "Explaining central bank trust in an inflation-targeting country: the case of the Reserve Bank of New Zealand," Oxford Economic Papers, Oxford University Press, vol. 73(1), pages 27-48.
    8. Johnson Worlanyo Ahiadorme, 2022. "Monetary policy transmission and income inequality in Sub-Saharan Africa," Economic Change and Restructuring, Springer, vol. 55(3), pages 1555-1585, August.
    9. Davtyan, Karen, 2017. "The distributive effect of monetary policy: The top one percent makes the difference," Economic Modelling, Elsevier, vol. 65(C), pages 106-118.
    10. Emira Arefa Aji & Raditya Sukmana, 2023. "Dual Mone Al Monetary Policy And Income Inequ Y Policy And Income Inequality In Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(3), pages 539-560, September.
    11. Chen, Siyan & Desiderio, Saul, 2018. "Computational evidence on the distributive properties of monetary policy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-32.
    12. Laura Gómez-Acevedo & Marc Hofstetter, 2020. "Disinflations and income distribution," Documentos CEDE 18481, Universidad de los Andes, Facultad de Economía, CEDE.
    13. Karen Davtyan, 2016. "“The Distributive effects of conventional and unconventional monetary policies”," AQR Working Papers 201606, University of Barcelona, Regional Quantitative Analysis Group, revised Apr 2016.
    14. Albert, Juan-Francisco & Peñalver, Antonio & Perez-Bernabeu, Alberto, 2020. "The effects of monetary policy on income and wealth inequality in the U.S. Exploring different channels," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 88-106.
    15. Momo Komatsu, 2023. "The Effect of Monetary Policy on Consumption Inequality: An Analysis of Transmission Channels through TANK Models," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(5), pages 1245-1270, August.
    16. Pedro S. Amaral, 2017. "Monetary Policy and Inequality," Economic Commentary, Federal Reserve Bank of Cleveland, issue January.


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