Does inflation inequality matter for monetary policy?

Authors:
  • Jacob Orchard, University of California, San Diego

Grant Type: doctoral

Grant Year: 2019

Grant Amount: $15,000

Grant description:

This project will investigate how individual specific inflation rates affect the transmission of monetary policy. This research seeks to extend previous work to understand if inflation inequality matters for aggregate monetary policy response by using a quantitative model similar to Kaplan, Moll, and Violante to investigate how the joint-distribution between inflation rates and wealth (liquid and illiquid) matter for aggregate monetary policy response. Also, while inflation inequality between income groups and individuals differs over time, this work also seeks to uncover whether dispersion has increased, following income inequality trends. Nielsen Homescan consumer panel data will be used to measure household’s nondurable consumption.

AUTHORS:

Jacob Orchard

Grant Categories

Macroeconomics and Inequality


Topics

Monetary Policy

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