Monetary Policy and Changes in Income Distribution

Niggle, Christopher J.

doi:10.1080/00213624.1989.11504940

Cited by 23 publications

(10 citation statements)

References 11 publications

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“…Thus, it is essential to each bank to maintain market confidence in its management, and this in general will require following lending policies similar to those other banks'. The papers by Moore (1989a), Niggle (1989b), Ash and Bell (1991) and Arestis and Howells (1994) have dealt with some of the redistributional effects of high levels of interest rates. However, one wonders how money could possibly matter within a model which explicitly assumes real variables (real income) to depend only on real factors (physical capital and labour).…”

Section: Beyond Transmission Mechanismsmentioning

confidence: 99%

“…The papers by Moore (1989a), Niggle (1989b), Ash and Bell (1991) and Arestis and Howells (1994) have addressed the consequences of monetary policy for personal income. However, and even in the case that a regional monetary policy could be put in practice, most researchers also acknowledge that this would not be desirable because, after considering the advantages and disadvantages attached to this, it would be of little help.…”

Section: The Regional Effects Of Monetary Policy: a Theoretical Framementioning

confidence: 99%

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Regional Monetary Policy

Fuentes¹

2005

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With the final phase of the European Monetary Union under way concern has been raised over the regional implications of the European Central Bank's (ECB) Monetary Policy. Departing from the standard approach utilized by the ECB, this book provides a comprehensive theoretical framework to explore the ways through which money and monetary policy may affect regions. Regional Monetary Policy examines the role that the banking system and the liquidity preference of economic agents play in the transmission of central banks' monetary policy decisions to regions within a country or countries within a currency union. This book utilizes a unique framework built upon the basic principles of the Post Keynesian monetary theory which enables the identification of a new way for money and monetary policy to have a regional impact: the behavioural effect. This book will prove essential reading for all students of economics and politics as well as readers interested in the development of the European Union.

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Section: Beyond Transmission Mechanismsmentioning

confidence: 99%

Section: The Regional Effects Of Monetary Policy: a Theoretical Framementioning

confidence: 99%

Regional Monetary Policy

Fuentes¹

2005

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“…To the extent that monetary policy actions affect different economic agents differently implies that monetary policy may have unintended distributional effects (Amaral, 2017). This assertion is supported by Niggle (1989) who found evidence of monetary policy's impact on inequality through its effects on interest rates, debt to income ratios and interest income. Over-emphasis of monetary policy on inflation is argued to have caused a series of recessions which translated into high unemployment and inequality by Galbraith (1998).…”

Section: Distributional Impact Of Monetary Policymentioning

confidence: 83%

Monetary Policy and Income Inequality in Ghana

Parlaktuna

Napari

2019

RAE

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Monetary policy, even if minimal and uncertain regarding the direction of impact, has been found to have distributional effects especially in the developed world. The purpose of this study is to determine the impact monetary policy has on income inequality in Ghana which can be a case study for a developing African Economy with independent monetary policy. Data for the period 2002Q1 to 2013Q4 is used. The study used the Impulse Response Functions (IRFs) by Local Projections methodology in estimating the degree and direction of impact of monetary policy on income distribution in Ghana. From the analysis, it is concluded that contractionary monetary policy leads to an increase in disposable income inequality in Ghana marginally.

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“…36. For earlier studies in a similar vein, see Moore (1989b), Niggle (1989) and Pollin (1986-87). 37.…”

Section: Notesmentioning

confidence: 92%

Interest rates, distribution and capital accumulation – A post-Kaleckian perspective on the US and Germany

Hein

Schoder

2011

International Review of Applied Economics

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We analyse the effects of interest rate variations on the rates of capacity utilisation, capital accumulation and profit in a simple post-Kaleckian distribution and growth model. This model gives rise to different potential accumulation regimes depending on the values of the parameters in the investment, saving and distribution function. Estimating these core behavioural equations for the US and Germany in the period 1960-2007, we find significant and robust effects of interest payments with the expected sign in each of the equations. Our estimation results imply, both for the US and for Germany, that the effects of changes in the real long-term rate of interest on the equilibrium rates of capacity utilisation, capital accumulation and profits, are characterised by the 'normal regime': rising long-term real rates of interest cause falling rates of capacity utilisation, capital accumulation and profits, as well as redistribution at the expense of labour income and hence an increasing profit share in both countries.

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Monetary Policy and Changes in Income Distribution

Cited by 23 publications

References 11 publications

Regional Monetary Policy

Regional Monetary Policy

Monetary Policy and Income Inequality in Ghana

Interest rates, distribution and capital accumulation – A post-Kaleckian perspective on the US and Germany

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