A Note on Income Inequality and Macro-Economic Volatility

Income inequality may influence macro-economic variables by affecting the money multiplier and the trade-off between inflation and output. In an AD-AS model with imperfect foresight income inequality intensifies the volatility of output and inflation rate by increasing the likelihood of oscillations as well as their magnitude. Volatility is, however, moderated when income inequality prolongs the business cycles

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Year of publication:	2004
Authors:	Levy, Amnon
Publisher:	[S.l.] : SSRN
Subject:	Einkommensverteilung \| Income distribution \| Volatilität \| Volatility \| Makroökonomik \| Macroeconomics \| Gesamtwirtschaftliche Nachfrage \| Aggregate demand \| Gesamtwirtschaftliches Angebot \| Aggregate supply \| Geldschöpfung \| Money creation

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Extent:	1 Online-Ressource (6 p)
Type of publication:	Book / Working Paper
Language:	English
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014115773