Inflation behaves differently across income levels – BIS paper
Study finds various channels are behind uneven responsiveness of inflation to monetary policy
Inflation responds to monetary policy to varying extents in different segments of the income distribution, research published by the Bank for International Settlements finds.
Miguel Ampudia, Michael Ehrmann and Georg Strasser note their result echoes recent findings in the “rapidly growing literature” on heterogeneous agents. They go beyond previous studies by exploring the channels that are behind the result.
In their working paper, they assess the impact of different consumption baskets and
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Iceland cuts rates by 50bp
Inflation continues to decelerate but GDP growth is revised down
Hungary holds rates again
MNB remains hopeful about 2025 as economy slides into recession
Bank Indonesia holds rates as rupiah weakens
Bank says inflationary policies under Trump would boost dollar and lead to fewer Fed rate cuts
Central banks to maintain independence despite threats – panel
Top central bankers discuss Trump, AI and why they plan to ignore IMF on rate cuts
More volatility calls for greater agility – Schnabel
ECB official says new tools, including negative rates, may be needed in more disruptive age
Return to floating rate a ‘medium-term goal’ – NBU official
Head of monetary policy says hryvnia still being used as “means of savings” during war
Ruling party loyalist to become new BoT chair
Appointment of Kittiratt Na-Ranong will increase concerns about erosion of bank’s independence
US debt sustainability and central bank balance sheet dynamics
Higher interest rates are putting pressure on central bank profits and may increase supply of government debt, especially during quantitative tightening. Will central banks be required to issue bonds?