NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Innocent Bystanders? Monetary Policy and Inequality in the U.S.

Olivier Coibion, Yuriy Gorodnichenko, Lorenz Kueng, John Silvia

NBER Working Paper No. 18170
Issued in June 2012
NBER Program(s):   EFG   IFM   ME

We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the United States since 1980. Contractionary monetary policy actions systematically increase inequality in labor earnings, total income, consumption and total expenditures. Furthermore, monetary shocks can account for a significant component of the historical cyclical variation in income and consumption inequality. Using detailed micro-level data on income and consumption, we document the different channels via which monetary policy shocks affect inequality, as well as how these channels depend on the nature of the change in monetary policy.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Acknowledgments and Disclosures

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18170

Users who downloaded this paper also downloaded these:
Romer and Romer w6793 Monetary Policy and the Well-Being of the Poor
Bordo and Haubrich w18194 Deep Recessions, Fast Recoveries, and Financial Crises: Evidence from the American Record
Aizenman and Jinjarak w18176 Income inequality, tax base and sovereign spreads
Aghion, Farhi, and Kharroubi w18072 Monetary Policy, Liquidity, and Growth
Levitt, List, Neckermann, and Sadoff w18165 The Behavioralist Goes to School: Leveraging Behavioral Economics to Improve Educational Performance
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us