Posts categorized under Monetary Policy

Monetary policy and household consumption spending in Portugal

July 9, 2022
This paper studies the effect of monetary policy across households of different Euro Area countries to understand the effects of the likely scenario of future interest rate hikes by the European Central Bank. Specifically, the paper studies mechanisms through which monetary policy may differentially affect households across the Euro Area. The rise in interest rates should be especially relevant to those countries with high debt levels, like Greece, Portugal, Italy and Spain.

Redistributive effects of monetary policy on labor income

October 26, 2021
In recent years, inequality has attracted a great deal of attention in monetary policy circles. A growing strand of the macroeconomic literature suggests that monetary policy is not immune to redistributive consequences, despite inequality not being an explicit target of its actions. The bulk of this debate centers around the relationship between monetary policy and asset prices, yet labor income represents a major source of inequality, and its relationship with monetary policy remains unexplored.