The Redistributive Effects of Monetary Policy Across Generations
a National Bank of Ukraine, Kyiv, Ukraine
Abstract

The paper revises the redistributive channels of monetary policy transmission and their impact on income and wealth distributions in a New-Keynesian Overlapping Generations (OLG) model. The model mimics total asset holdings and earnings processes of several types of households across generations, based on their attitude to saving and income group. In this environment, expansionary monetary shocks stimulate capital and debt accumulation to a larger extent for middle-aged individuals, contributing to intergenerational inequality. Heterogeneity of labor income augments this effect, benefitting richer and more productive workers.

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Avaliable online 29 June 2018
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Cite as: Bondarenko, O. (2018). The Redistributive Effects of Monetary Policy Across Generations. Visnyk of the National Bank of Ukraine, 244, 44-60. https://doi.org/10.26531/vnbu2018.244.03
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