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Monetary policy and the persistent aggregate effects of wealth redistribution / by Martin Kuncl and Alexander Ueberfeldt.FB3-5/2021-38E-PDF

"We identify a sizable wealth redistribution channel which creates a monetary policy trade-off whereby short-term economic stimulus is followed by persistently lower output over the medium term. This trade-off is stronger in economies with more nominal household debt but weakened by a more aggressive monetary policy stance and under price-level targeting. Given this trade-off, low-for-long episodes can lead to persistently depressed output. The medium-term implications of the wealth redistribution channel rely on the presence of labor supply heterogeneity, which we show both analytically and in the context of an estimated New Keynesian general equilibrium model with household heterogeneity"--Abstract, page ii.

Permanent link to this Catalogue record:
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Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleMonetary policy and the persistent aggregate effects of wealth redistribution / by Martin Kuncl and Alexander Ueberfeldt.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2021-38
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: August 6, 2021."
  • Includes bibliographical references (pages 40-42).
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2021.
  • ©2021
Author / Contributor
  • Kuncl, Martin, author.
Description1 online resource (ii, 57 pages) : colour illustrations.
Catalogue number
  • FB3-5/2021-38E-PDF
Subject terms
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