Should Inequality Factor into Central Banks' Decisions? /

Inequality is increasingly a concern. Fiscal and structural policies are well-understood mitigators. However, less is known about the potential role of monetary policy. This paper investigates how inequality matters for monetary policy within a tractable Two-Agent New Keynesian model that captures i...

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Detalles Bibliográficos
Autor Principal: Hansen, Niels-Jakob
Outros autores: Lin, Alessandro, Mano, Rui
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2020.
Series:IMF Working Papers; Working Paper ; No. 2020/196
Acceso en liña:Full text available on IMF
Descripción
Summary:Inequality is increasingly a concern. Fiscal and structural policies are well-understood mitigators. However, less is known about the potential role of monetary policy. This paper investigates how inequality matters for monetary policy within a tractable Two-Agent New Keynesian model that captures important dimensions of inequality. We find some support for making inequality an explicit target for monetary policy, particularly if central banks follow standard Taylor rules.
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Descrición Física:1 online resource (39 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
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