Simone Arrigoni, Massimo Ferrari Minesso
Understanding how US monetary policy is transmitted to foreign economies has long been a challenge for policymakers and researchers. This column shows that the domestic distribution of income shapes the international transmission of US monetary policy. The authors document that spillover effects on the real economy are stronger in more unequal countries, though with opposite effects in advanced and emerging market economies. They rationalise this with a framework in which inequality interacts with access to international financial markets. The results suggest that inequality is not only a social outcome, but also a structural feature influencing how economies respond to international developments.
Πηγή: Voxeu