 Income Inequality and the Distributional Effects of Monetary Policy: The Role of Financial HeterogeneityCzech Journal of Economics and Finance (Finance a uver), 2020, vol. 70, issue 6, 488-520 Abstract: We study the effects of both standard and unconventional monetary policies (UMPs) of the European Central Bank (ECB) on income inequality in 19 Euro Area (EA) member states over the years 2008-2018. We distinguish two main groups of UMPs: quantitative easing (QE) and credit easing (CE) policies. We further investigate the role of financial heterogeneity among EA member states in affecting the distributional effects of these monetary policies. Using the pooled mean group (PMG) estimator we find that restrictive standard monetary policy and expansionary UMPs lead to higher income inequality. Furthermore, our results suggest that a higher level of financial development augments the distributional effects of monetary policies. We also find that the financial integration and the stage of the credit cycle affect the distributional effects of monetary policy, while the stage of real estate prices and stock prices cycles do not. Keywords: income inequality; standard monetary policy; unconventional monetary policy (UMP); distributional effects; financial heterogeneity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:70:y:2020:i:6:p:488-520 Access Statistics for this article More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.