‘The effect of monetary policy on inflation heterogeneity along the income distribution’
by Miguel Ampudia
European Central Bank
Meeting ID: 683 469 0808
This paper studies the effect of monetary policy on inflation along the income distribution in several euro area countries. It shows that monetary policy has differential effects and identifies two channels which point in opposite directions. On the one hand, different consumption shares imply that inflation by high-income households responds less to monetary policy. On the other hand, the paper provides novel evidence that there are substantial differences in shopping behaviour and its reaction to monetary policy, which imply that inflation by high-income households responds more to monetary policy.
Miguel Ampudia is an economist in the Financial Research Division of the European Central Bank. He obtained a Ph. D. in Economics from Boston University and a B. Sc. in Business Administration for the Universidad Autónoma de Madrid. His research interests cover household finance, financial markets and financial institutions. His research has appeared in peer-reviewed journals, such as the European Economic Review, Management Science and the Journal of Financial Stability, among others.