Monetary policy, credit, and labor income redistribution

Grant description:

There is an enormous amount of interest recently in the heterogeneous effects of monetary policy, with an eye on questions such as whether monetary policy contributes to inequality. This research will examine two significant research questions within this literature: the effect of monetary policy on inequality and differential effects of the credit transmission channel.

This project will use Portuguese administrative data that matches employer-employee data with credit registry data. The project is likely to lead to fine-grained estimates of the effects of monetary policy on the distribution of labor income, as well as on the effects of the distribution of firm credit outcomes.