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Inflation and the Poor

William Easterly () and Stanley Fischer

Journal of Money, Credit and Banking, 2001, vol. 33, issue 2, 160-78

Abstract: Using polling data for 31,869 households in 38 countries and allowing for country effects, we show that the poor are more likely than the rich to mention inflation as a top national concern. This result survives several robustness checks. We also find direct measures of improvements in well-being of the poor--the change in their share in national income, the percent decline in poverty, and the percent change in the real minimum wage--to be negatively correlated with inflation in pooled cross-country samples.

Date: 2001
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