Inequality, inflation, and central bank independence

Jim Dolmas, Gregory Huffman and Mark Wynne

Canadian Journal of Economics, 2000, vol. 33, issue 1, 271-287

Abstract: What can account for the different contemporaneous inflation experiences of various countries, and of the same country over time? We present an analysis of the determination of inflation from a political economy perspective. We document a positive correlation between income inequality and inflation and then present a theory of the determination of inflation outcomes in democratic societies that illustrates how greater inequality leads to greater inflation, owing to a desire by voters for wealth redistribution. We conclude by showing that democracies with more independent central banks tend to have better inflation outcomes for a given degree of inequality.

JEL-codes: E5 H0 (search for similar items in EconPapers)
Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
https://links.jstor.org/sici?sici=0008-4085%282000 ... IACBI%3E2.0.CO%3B2-W (text/html)
only available to JSTOR subscribers

Related works:
Journal Article: Inequality, inflation, and central bank independence (2000)
Working Paper: Inequality, inflation, and central bank independence (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:33:y:2000:i:1:p:271-287

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().