Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/251301 
Year of Publication: 
2021
Series/Report no.: 
Sveriges Riksbank Working Paper Series No. 403
Publisher: 
Sveriges Riksbank, Stockholm
Abstract: 
We use Swedish administrative individual-level data to document five facts about the distributional income effects of monetary policy. (i) The effects of monetary policy shocks are U-shaped with respect to the income distribution-i.e., expansionary shocks increase the incomes of high- and low-income individuals relative to middle-income individuals. (ii) The large effects in the bottom are accounted for by the labor-income response and (iii) those in the top by the capital-income response. (iv) The heterogeneity in the labor-income response is due to the earnings heterogeneity channel, whereas (v) that in the capital-income response is due to the income composition channel.
Subjects: 
Monetary policy
income inequality
heterogeneous agents
administrative data
JEL: 
C55
E32
E52
Document Type: 
Working Paper

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