Yasmi Bracht Juver - Academia.edu (original) (raw)
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National Research University “Higher School of Economics” (HSE), Moscow, Russia
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Cross-country evidence on inflation and income inequality suggests that they are positively relat... more Cross-country evidence on inflation and income inequality suggests that they are positively related. This article explores the hypothesis that this correlation is the outcome of a distributional conflict underlying the determination of government policies. A political economy model is presented in which equilibrium inflation is positively related to the degree of inequality in income due to the relative vulnerability to inflation of low income households.
Cross-country evidence on inflation and income inequality suggests that they are positively relat... more Cross-country evidence on inflation and income inequality suggests that they are positively related. This article explores the hypothesis that this correlation is the outcome of a distributional conflict underlying the determination of government policies. A political economy model is presented in which equilibrium inflation is positively related to the degree of inequality in income due to the relative vulnerability to inflation of low income households.