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What is the Impact of Monetary Policy on Wealth Inequality?

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Abstract

We construct a global panel data set to examine the relationship between monetary policy 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. Interest rates have an insigni cant distributional impact overall, but this relationship becomes signi cant in a sample of OECD countries.

Suggested Citation

  • Sutirtha Bagchi & Michael Patrick Curran & Matthew J. Fagerstrom, 2019. "What is the Impact of Monetary Policy on Wealth Inequality?," Villanova School of Business Department of Economics and Statistics Working Paper Series 39, Villanova School of Business Department of Economics and Statistics.
    • Handle: RePEc:vil:papers:39
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    File URL: http://repec.library.villanova.edu/workingpapers/VSBEcon39.pdf
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    More about this item

    Keywords

    Cantillon effect; wealth inequality; money nonneutrality;

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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