Download PDFOpen PDF in browserDisinflations and income distributionEasyChair Preprint 190323 pages•Date: November 8, 2019AbstractMost countries in the world have brought inflation down to very low rates. While there is broad consensus on the fact that bringing down inflation has adverse (short-run) consequences on aggregate demand, we know little about the distributional impact of disinflations. We show that along disinflations the income distribution tends to worsen and discuss the implications for monetary policy of this finding. Keyphrases: Disinflation, Inflation, aggregate demand, central banks, disinflation episode, income distribution, monetary policy
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