Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967987 | Journal of Monetary Economics | 2007 | 27 Pages |
Abstract
Cross-country evidence on inflation and income inequality suggests that they are positively related. This article explores the hypothesis that this correlation is the outcome of a distributional conflict underlying the determination of government policies. A political economy model is presented in which equilibrium inflation is positively related to the degree of inequality in income due to the relative vulnerability to inflation of low income households.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Stefania Albanesi,