Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297298 
Year of Publication: 
2023
Series/Report no.: 
ECB Working Paper No. 2858
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
This paper studies the effect of monetary policy on inflation along the income distribution in several euro area countries. It shows that monetary policy has differential effects and identifies two channels which point in opposite directions. On the one hand, different consumption shares imply that inflation by high-income households responds less to monetary policy. On the other hand, the paper provides novel evidence that there are substantial differences in shopping behaviour and its reaction to monetary policy, which imply that inflation by high-income households responds more to monetary policy.
Subjects: 
inflation
distributional effects
monetary policy
shopping behaviour
substitution
JEL: 
E31
E52
D30
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6223-0
Document Type: 
Working Paper

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