Disinflations and income distribution

EasyChair Preprint 1903

Abstract

Most countries in the world have brought inflation down to very low rates. While there is broad consensus on the fact that bringing down inflation has adverse (short-run) consequences on aggregate demand, we know little about the distributional impact of disinflations. We show that along disinflations the income distribution tends to worsen and discuss the implications for monetary policy of this finding.

Keyphrases: Disinflation, Inflation, aggregate demand, central banks, disinflation episode, income distribution, monetary policy

@booklet{EasyChair:1903,
  author    = {Laura Gómez and Marc Hofstetter},
  title     = {Disinflations and income distribution},
  howpublished = {EasyChair Preprint 1903},
  year      = {EasyChair, 2019}}