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Income Inequality: Does Inflation Matter?
Author:
Mr. Ales Bulir
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Series:
IMF Working Papers
Volume/Issue:
Volume 1998: Issue 007
Language:
English
Publication Date:
01 Jan 1998
DOI:
https://doi.org/10.5089/9781451928549.001
ISBN:
9781451928549
ISSN:
1018-5941
Pages:
34
Keywords:
WP; income; GDP; low-inflation country; Income distribution; inflation; Kuznets hypothesis; low inflation; inflation sensitivity; high-inflation steady state; inflation variable; Income inequality; Personal income; Price stabilization; Eastern Europe; Africa; Asia and Pacific
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper contributes to the income inequality literature that is based on the traditional Kuznets model. Price stability, financial deepening, level of development, state employment, and fiscal redistribution are found to enhance income equality in a given country. While the effect of price stability is uniform for all levels of GDP per capita, the effect of financial deepening is found to increase with the level of development. Moreover, tight monetary policies do not seem to have any austere effects; low inflation reinforces, rather than counteracts, the income-equalizing effect of fiscal redistribution.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund