Monetary Policy and the Distribution of Income and Wealth
Co-organized with the Federal Reserve Bank of St. Louis and Washington University
St. Louis, United States
Call for Papers (PDF)
There has been intense focus recently on inequality in income and wealth across and within countries. Both developed and developing countries have experienced a marked increase in the gap between high and low income households, as well as an increase in the concentration of income and wealth among the extremely wealthy.
We are interested in understanding the causes and consequences of income and wealth inequality, and the effects of monetary policy on the distribution of income and wealth. While there is some work on the distributional effects of monetary policy, there are many important research questions in this area that we think should be answered. The role of central banks with regard to this topic is important, but under-researched.
Against this background, the Council on Economic Policies (CEP), the Federal Reserve Bank of St. Louis, and Washington University in St. Louis organized a workshop on Monetary Policy and the Distribution of Income and Wealth, on September 11-12, 2015 at the Federal Reserve Bank of St. Louis.
The event brought together researchers from academic institutions, central banks, and other non-academic research institutions.
This workshop is part of a larger CEP program on monetary policy and sustainability. It followed a workshop that was co-organized by CEP and the Federal Reserve Bank of Atlanta on monetary policy and inequality in 2014.
We were particularly interested in the following topics, but also discussed papers that do not deal with these issues specifically:
– What are the effects of monetary policy on inequality in income and wealth? What are the main transmission channels for these effects?
– What are the effects of inflation on inequality?
– What are the effects of unconventional monetary policies on the distribution of income and wealth?
– Do extended periods of time at the zero lower bound matter for inequality?
– What would be the impact of alternative monetary policy targets and instruments on income and wealth distribution?
Friday, September 11, 2015 13.00-14.00 Mortgages and Monetary Policy
Carlos Garriga, Federal Reserve Bank of St. Louis
Finn Kydland, University of California – Santa Barbara
Roman Sustek, Queen Mary University of London (Paper)
Discussant: Amir Kermani, University of California – Berkeley
14.00-15.00 The Transmission of Monetary Policy through Redistributions and Durable Purchases
Vincent Sterk, University College London (Paper)
Silvana Tenreyro, London School of Economics
Discussant: Carlos Garriga, Federal Reserve Bank of St. Louis
15.00-15.30 Break 15.30-16.30 Distributional Effects of Monetary Policy
Matthias Doepke, Northwestern University
Martin Schneider, Stanford University (Paper)
Veronika Selezneva, Northwestern University
Discussant: Stephen Williamson, Federal Reserve Bank of St. Louis
16.30-17.30 Monetary Policy and the Redistribution Channel
Adrien Auclert, Princeton University (Paper)
Discussant: Makoto Nakajima, Federal Reserve Bank of Philadelphia
19.00- Dinner Saturday, September 12, 2015 09.00-10.00 Inequality and Optimal Monetary Policy
Dong-Whan Ko, Korea Information Society Development Institute (Paper)
Discussant: Pierre Monnin, Council on Economic Policies
10.00-11.00 The Power of Forward Guidance Revisited
Alisdair McKay, Boston University (Paper)
Emi Nakamura, Columbia University
Jon Steinsson, Columbia University
Discussant: Marco Airaudo, Drexel University
11.00-11.30 Break 11.30-12.30 Optimal Monetary Policy with Heterogeneous Money Holdings
Francesco Lippi, EIEF and University of Sassari
Stefania Ragni, University of Sassari
Nicolas Trachter, Federal Reserve Bank of Richmond (Paper)
Discussant: Fernando Martin, Federal Reserve Bank of St. Louis
12.30-13.30 Lunch 13.30-14.30 Real Balance Effects When the Nominal Interest Rate is Zero
Anton Braun, Federal Reserve Bank of Atlanta (Paper)
Takemasa Oda, Bank of Japan
Discussant: Joseph Haslag, University of Missouri-Columbia
14.30-15.30 Optimal Monetary Policy at the Zero Lower Bound
Costas Azariadis, Washington University and Federal Reserve Bank of St. Louis
James Bullard, Federal Reserve Bank of St. Louis
Aarti Singh, University of Sidney
Jacek Suda, Narodowy Bank Polski
Discussant: Roger Farmer, University of California – Los Angeles
– Michael Kumhof, Bank of England
– Prakash Loungani, International Monetary Fund
– Pierre Monnin, Council on Economic Policies
– Yongseok Shin, Washington University and Federal Reserve Bank of St. Louis
– Stephen Williamson, Federal Reserve Bank of Louis