Inflation and Inequality

Stefania Albanesi

No 199, Working Papers from IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University

Abstract: Cross-country evidence on inflation and income inequality suggests that they are positively related. I explore the hypothesis that this correlation is the outcome of a distributional conflict underlying the determination of fiscal policy. I study a bargaining model of the political system in which inflation and inequality are positively correlated due to the relative vulnerability to inflation of low income households.

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Related works:
Journal Article: Inflation and inequality (2007)
Working Paper: Inflation and Inequality (2002)
Working Paper: Inflation and Inequality (2002)
Working Paper: Inflation and Inequality (2001)
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