Using the Classical Equation of Exchange and Cantillon Effects to Help Describe the Increasing Inequality Created by an Increasingly Active Central Bank Monetary Policy

Cameron Weber ()

MPRA Paper from University Library of Munich, Germany

Abstract: To begin we need to define categories as to what is “inequality” and as related to monetary policy. For our purposes we will define the “poor” as those with less disposable income and the “rich” as those with more disposable income. We can realize that the poor spend more of their income on the means of existence in the product markets, whereas the rich have more disposable income to invest in the asset markets. Any (monetary) policy which harms the poor and helps the rich then can be identified as regressive policy creating inequality.

Keywords: Cantillon Effects; Monetary Policy; Inequality; Central Banks; Monetization; Financialization; Political Economy (search for similar items in EconPapers)
JEL-codes: B53 D3 E02 E6 H63 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:116787

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