Income inequality as long-term conditioning factor of monetary transmission to bank rates

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F23%3A10471060" target="_blank" >RIV/00216208:11230/23:10471060 - isvavai.cz</a>

Výsledek na webu

<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=zw7KqSz-tZ" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=zw7KqSz-tZ</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.econmod.2023.106492" target="_blank" >10.1016/j.econmod.2023.106492</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Income inequality as long-term conditioning factor of monetary transmission to bank rates

Popis výsledku v původním jazyce

Empirical evidence on the effect of income inequality on monetary policy transmission to bank interest rates remains scarce, despite few theoretical and empirical contributions suggesting that inequality might influence the response of economic agents to monetary policy shocks. We develop a novel measure of income inequality to investigate the effect of inequality on the transmission of monetary policy to bank loan rates. Using a panel of euro area countries over the years 2008-2016, we find that income inequality influences the transmission of monetary policy to bank loan rates over the long-term. The effect of income inequality on monetary transmission is heterogeneous across the different loan market segments and monetary policy measures. More specifically, higher income inequality hinders the transmission of standard monetary policy to consumer loan rates and limits the transmission of unconventional monetary policy to housing loan rates. Conversely, higher inequality improves monetary transmission to small firm loan segment.

Název v anglickém jazyce

Income inequality as long-term conditioning factor of monetary transmission to bank rates

Popis výsledku anglicky

Empirical evidence on the effect of income inequality on monetary policy transmission to bank interest rates remains scarce, despite few theoretical and empirical contributions suggesting that inequality might influence the response of economic agents to monetary policy shocks. We develop a novel measure of income inequality to investigate the effect of inequality on the transmission of monetary policy to bank loan rates. Using a panel of euro area countries over the years 2008-2016, we find that income inequality influences the transmission of monetary policy to bank loan rates over the long-term. The effect of income inequality on monetary transmission is heterogeneous across the different loan market segments and monetary policy measures. More specifically, higher income inequality hinders the transmission of standard monetary policy to consumer loan rates and limits the transmission of unconventional monetary policy to housing loan rates. Conversely, higher inequality improves monetary transmission to small firm loan segment.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50201 - Economic Theory

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach<br>I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Economic Modelling

ISSN

0264-9993

e-ISSN

1873-6122

Svazek periodika

128

Číslo periodika v rámci svazku

November 2023

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

27

Strana od-do

106492

Kód UT WoS článku

001074839500001

EID výsledku v databázi Scopus

2-s2.0-85170222823