Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183352
Authors: 
Ampudia, Miguel
Georgarakos, Dimitris
Slacalek, Jiri
Tristiani, Oreste
Vermeulen, Philip
Violante, Giovanni L.
Year of Publication: 
2018
Series/Report no.: 
ECB Working Paper 2170
Abstract: 
This paper considers how monetary policy produces heterogeneous effects on euro area households, depending on the composition of their income and on the components of their wealth. We first review the existing evidence on how monetary policy affects income and wealth inequality. We then illustrate quantitatively how various channels of transmission - net interest rate exposure, intertemporal substitution and indirect income channels - affect individual euro area households. We find that the indirect income channel has an overwhelming importance, especially for households holding few or no liquid assets. The indirect income channel is therefore also a substantial driver of changes in consumption at the aggregate level.
Subjects: 
Monetary policy
inequality
household heterogeneity
quantitative easing
JEL: 
D14
D31
E21
E52
E58
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3275-2
Document Type: 
Working Paper
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