Inflation and Income Inequality

Sieroń, Arkadiusz

doi:10.18267/j.pep.630

Cited by 19 publications

(18 citation statements)

References 39 publications

(29 reference statements)

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“…The findings of the study found a U-shaped link between long-run inflation and income inequality in all ten countries. Similar findings were reached by Sieron (2017), who examined the relationship between inflation and income inequality in the United States. Based on the theoretical analysis of relevant empirical data, the study found that inflation, which accelerated after the collapse of the Bretton Woods system in 1971, would have contributed to the rise in income inequality in the United States since the 1970s.…”

Section: Introductionsupporting

confidence: 77%

The impact of monetary systems on income inequity and wealth distribution

Othman

Alhabshi

Kassim

et al. 2020

IJOEM

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PurposeThis study uses the autoregressive distributed lag model (ARDL) econometric approach to investigate empirically the effects of cryptocurrencies, the gold standard and traditional fiat money on global income inequality measured based on the Gini coefficient, and various ratios of income inequality distribution such as top 1 per cent, top 10 per cent, top 40 per cent and top 50 per cent.Design/methodology/approachThe study uses the ARDL econometric approach.FindingsThe findings indicated that cryptocurrency and gold standard monetary systems contributed significantly to reducing global inequality of income and wealth distribution. Conversely, the traditional fiat money system contributes positively to global income and wealth inequality while also contributing significantly to their fluctuation.Practical implicationsThis suggests that the fiat monetary system results in the coercive redistribution of income and wealth if governments pursue a social welfare policy. They must resolve this conflict between the current fiat monetary system and social policy by opting for an alternative monetary system such as cryptocurrency or gold standard. These alternative monetary systems offer the promise of resolving the income and wealth inequality associated with the traditional monetary system which are accompanied with the channels of inflation, lack of financial inclusion and debt creation, and to offer a more sustainable financial system.Originality/valueThe study recommends that monetary policy must be revisited to account for its direct effect on income and wealth redistribution to achieve social welfare goals.

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Section: Introductionsupporting

confidence: 77%

The impact of monetary systems on income inequity and wealth distribution

Othman

Alhabshi

Kassim

et al. 2020

IJOEM

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“…Одновременно с этим рост экономической активности повышает прибыль от бизнеса, и если этот источник дохода играет большую роль для богатых, то монетарная политика повысит неравенство, но если активность растет за счет малого бизнеса, которым владеют относительно бедные, то эффект будет обратным. Наконец, в странах с прогрессивным налогообложением инфляция повышает неравенство, увеличивая реальное налогообложение для относительно бедных из-за стабильности номинальных показателей доходов, после которых применяется больший налог (Sieron, 2017a).…”

Section: каналы воздействия монетарной политики на распределение доходовunclassified

“…Пожалуй, единственным исключением среди относительно современных работ, являются работы Сиерона (Sieron, 2017a;Sieron, 2017b). В них автор рассматривает различные каналы воздействия, в том числе частично уже упомянутые выше, но концентрирует внимание именно на эффекте Кантильона, который, в отличие от всех остальных, имеет однонаправленное действие и тем самым позволяет существенно повысить качество анализа монетарной политики.…”

Section: эффект кантильона и его влияние на рост неравенства в сшаunclassified

“…Исследуя этот вопрос и разбираясь в уже проведенных исследованиях, мы, как и ряд других экономистов (Galli, Hoeven, 2001;Krueger, 2012;Saiki, Frost, 2014;Davtyan, 2017;Sieron, 2017a) обнаружили один интересный факт: абсолютное большинство экономистов в поисках причин роста неравенства игнорирует роль монетарной политики. Показательным в этом смысле являются доклады ОЭСР и Всемирного банка, посвященные неравенству, где вообще ничего не говорится о центральных банках и возможной роли монетарной политики (OECD, 2015; The World Bank, 2016).…”

Section: Introductionunclassified

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Monetary Policy and Inequality

Rakviashvili¹

2020

JIS

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The article provides a literature review of studies of the impact of monetary policy on income and wealth inequality. Based on the analysis and systematization of the articles mainly written over the past 25–30 years as well as articles written by central bank authorities, the main approaches to assessing the extent to which the Fed's actions are responsible for the growth of wealth inequality in the United States, which began in the 1970s, are identified. It was revealed that the relative unanimity of economists on this issue was replaced by significant pluralism of opinions after the crisis of 2007–2009. Among other reasons this was caused by the activity of central banks and their use of non-conventional approaches in conducting the monetary policy. In addition, the channels through which the actions of central banks affect the distribution of wealth in the economy are identified. In total, five such channels were singled out. Thus, changes in the monetary policy affect the debt market and the structure of assets and liabilities of households, while households with fixed incomes and with a high propensity to use cash are more likely to suffer losses during the expansionary monetary policy. And the fifth channel, which is less popular among the economists, the "Cantillon effect", leads to an increase in the wealth of the first recipients of the issued money at the expense of those who are farthest from the center of emission. The article provides empirical evidence of why this effect is significant for the American economy, and theoretical arguments indicating that taking the Cantillon effect into account can add certainty to studies of both monetary policy costs and institutional changes caused by rising inequality.

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“…Oznacza to, że część osób otrzymuje nowo wykreowane pieniądze wcześniej od innych, jeszcze przed powszechnym wzrostem cen, co zwiększa ich realny dochód i powiększa majątek. Efekt Cantillona wpływa zatem na podział dochodu w społeczeństwie, oddziałując na poziom nierówności dochodowo-majątkowych (Sieroń, 2017).…”

Section: Teoria Dystrybucji Dochodu I Nierówności Dochodowychunclassified

Znaczenie efektu Cantillona w teorii ekonomii

Sieroń

2016

ekon

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The Role of Cantillon Effect in EconomicsThe aim of this article is to examine the role of the Cantillon effect in economics. The literature of economic theory lacks the detailed discussion of the implications of the first-round effect for economics. This paper attempts to fill this gap. The article is mainly theoretical, but considerations presented are illustrated by relevant empirical data. Based on the analysis, the author concludes that the effect of Cantillon develops particularly the theory of money and inflation, the theory of banking and central banking, the theory of business cycle and price bubbles, the theory of income distribution and income and wealth inequalities, and the theory of public choice.

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Inflation and Income Inequality

Cited by 19 publications

References 39 publications

The impact of monetary systems on income inequity and wealth distribution

The impact of monetary systems on income inequity and wealth distribution

Monetary Policy and Inequality

Znaczenie efektu Cantillona w teorii ekonomii

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