The Redistributive Effects of Monetary Policy Across Generations
Journal Title: Visnyk of the National Bank of Ukraine - Year 2018, Vol 0, Issue 244
Abstract
The paper revises the redistributive channels of monetary policy transmission and their impact on income and wealth distributions in a New-Keynesian Overlapping Generations (OLG) model. The model mimics total asset holdings and earnings processes of several types of households across generations, based on their attitude to saving and income group. In this environment, expansionary monetary shocks stimulate capital and debt accumulation to a larger extent for middle-aged individuals, contributing to intergenerational inequality. Heterogeneity of labor income augments this effect, benefitting richer and more productive workers.
Authors and Affiliations
Olga Bondarenko
Keywords
Related Articles
- EP ID EP426834
- DOI 10.26531/vnbu2018.244.03
- Views 143
- Downloads 0
Central Bank Independence and Financial Stability: Orthodox and Heterodox Approaches
Abstract This study argues that post-crisis discussions on central bank independence are less about a choice of a level of independence but more about a relation between the independence and the central bank mandate in...
A Strategic Document on Monetary Policy for the Period of the Inflation Targeting Adoption in Ukraine
The article explains why the Main Guidelines of Monetary Policy need to be adopted in a new format: A monetary policy strategy for 2016-2020. This document must combine the program component (goals, objectives and ways o...
Macroeconomic Effects of Minimum Wage Increases in an Economy with Wage Underreporting
I have built a monetary DSGE model to investigate how wage underreporting in an economy characterized by a minimum wage regime affects the macroeconomic response to a minimum wage increase. The model is calibrated and es...
Independence of Central Banks in Commodity Economies
This article introduces the hypothesis that resource-rich countries display a low degree of central bank independence (CBI). This hypothesis is proven based on multivariable regression, but the influence of resource fact...
Estimating the Fiscal Impulse in Ukraine
This paper estimates the fiscal impulse for Ukraine following the methodology of the OECD, which disaggregates budget revenues and expenditures into categories that are driven by economic cycles. To estimate the fiscal i...