Real effects of inflation through the redistribution of nominal wealth
Matthias Doepke and
Martin Schneider
No 355, Staff Report from Federal Reserve Bank of Minneapolis
Abstract:
This paper provides a quantitative assessment of the effects of inflation through changes in the value of nominal assets. We document nominal positions in the U.S. across sectors as well as different groups of households, and estimate the redistribution brought about by a moderate inflation episode. Redistribution takes the form of ?ends-against-the-middle:? the middle class gains at the cost of the rich and poor. In addition, inflation favors the young over the old, and hurts foreigners. A calibrated OLG model is used to assess the macroeconomic implications of this redistribution under alternative fiscal policy rules. We show that inflation-induced redistribution has a persistent negative effect on output, but improves the weighted welfare of domestic households.
Keywords: Wealth; Inflation (Finance) (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://minneapolisfed.org/research/sr/sr355.pdf
http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=926 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=926 [301 Moved Permanently]--> https://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=926)
Related works:
Working Paper: Real Effects of Inflation Through the Redistribution of Nominal Wealth (2005) 
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:fip:fedmsr:355
Access Statistics for this paper
More papers in Staff Report from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Kate Hansel ().