Does inflation targeting increase income inequality?

Altunbaş, Yener and Thornton, John (2022) Does inflation targeting increase income inequality? Journal of Post Keynesian Economics. ISSN 0160-3477

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Abstract

We contribute to the growing empirical literature on the impact of monetary policy on income distribution by focusing on the impact of adopting an inflation targeting (IT) regime to guide monetary policy. We assess the impact employing a panel of 121 advanced and developing economies, including 27 IT adopters, during the period 1971–2015. Our results suggest that IT adoption has contributed to greater inequality of household income as measured by the Gini coefficient and to a reduced share of GDP going to labor compensation. The results are robust to alternative estimation methodologies and to variations in the sample with respect to countries and data frequency.

Item Type: Article
Uncontrolled Keywords: income distribution,inflation targeting,monetary policy,inflation targeting,monetary policy,economics and econometrics,sdg 10 - reduced inequalities ,/dk/atira/pure/subjectarea/asjc/2000/2002
Faculty \ School: Faculty of Social Sciences > Norwich Business School
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Depositing User: LivePure Connector
Date Deposited: 13 Jul 2022 09:30
Last Modified: 15 Aug 2022 04:32
URI: https://ueaeprints.uea.ac.uk/id/eprint/86089
DOI: 10.1080/01603477.2022.2101475

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