A0301
Title: The distributional effects of stabilization policy
Authors: Michael Owyang - Federal Reserve Bank of St Louis (United States) [presenting]
Alessia Paccagnini - University College Dublin (Ireland)
Laura Jackson Young - Bentley University (United States)
Abstract: Recent papers have studied the effects of monetary policy on the distribution of income. Generally, expansionary monetary policy (i.e., lower interest rates) is thought to increase income inequality via capital gains income. We argue that any expansionary stabilization policy -monetary or fiscal- has the same distributional effects. Even policies that target income inequality, such as distributional tax policy, can raise income inequality if their net effects are expansionary.
