The Distributional Effects of Expansionary Monetary Policy

Dados Bibliográficos

ID10251908
AutoresRobert Gmeiner (0000-0002-7470-6167, Reeves School of Business Methodist University Fayetteville North Carolina USA, autor correspondente)
Ano2025
Volume78
Fascículo2
Páginas587-606
Data de publicação2025-05-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoKyklos (JOURNAL)
Identificadores do periódicoISSN: 0023-5962 • E-ISSN: 1467-6435
EditoraWiley (PUBLISHER • GB)
DOI10.1111/kykl.12438
OpenAlexW4406036692
IdiomaEN
Referências citadas51

Monetary expansion can lead to inflation. Using economy‐wide measures, such as the all item CPI or the GDP deflator, these effects can be quantified, but this leaves open the question of which prices are inflating more, and thus whether monetary expansion is more harmful to the rich or poor, depending on their respective consumption patterns. This paper constructs quarterly consumer price indices specific to each income quintile in the United States from 1990 to 2022. Using transfer function autoregressive moving average models with exogenous regressors (ARMAX), significant inflationary effects of monetary expansion CPIs for the lowest income quintile are observed that are independent of changes in the CPI for higher income quintiles. More generally, households that are likely to spend a higher proportion of income on goods with inelastic demand experience higher inflation rates. These effects, which are robust to specification, are caused by monetary expansion from Federal Reserve purchases of government debt, but not other assets

Economics · Keynesian economics · Macroeconomics · Monetary economics · Monetary policy · Economic Theory and Policy · Global Financial Crisis and Policies · Monetary Policy and Economic Impact