This study tests whether income inequality creates greater volatility in stock prices across a broad sample of … countries. Contrary to the idea that inequality creates social and political uncertainty that is reflected in higher volatility …, we instead find a negative association between inequality and volatility. To make stronger causal inferences, we use the …

's effect, we find that this simple friction more than doubles output persistence and increases output volatility 9-fold. The …

macroeconomic volatility. We also obtain that monetary contractions have redistributive effects in favor of asset holders, broadly …