Monetary Policy and the Redistribution Channel

Adrien Auclert

American Economic Review, 2019, vol. 109, issue 6, 2333-67

Abstract: This paper evaluates the role of redistribution in the transmission mechanism of monetary policy to consumption. Three channels affect aggregate spending when winners and losers have different marginal propensities to consume: an earnings heterogeneity channel from unequal income gains, a Fisher channel from unexpected inflation, and an interest rate exposure channel from real interest rate changes. Sufficient statistics from Italian and US data suggest that all three channels are likely to amplify the effects of monetary policy.

JEL-codes: E21 E31 E43 E52 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/aer.20160137
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Citations: View citations in EconPapers (414)

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Related works:
Working Paper: Monetary Policy and the Redistribution Channel (2017)
Working Paper: Monetary Policy and the Redistribution Channel (2017)
Working Paper: Monetary Policy and the Redistribution Channel (2015)
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