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This paper contributes to the income inequality literature that is based on the traditional Kuznets model. Price stability, financial deepening, level of development, state employment, and fiscal redistribution are found to enhance income equality in a given country. While the effect of price stability is uniform for all levels of GDP per capita, the effect of financial deepening is found to increase with the level of development. Moreover, tight monetary policies do not seem to have any austere effects; low inflation reinforces, rather than counteracts, the income-equalizing effect of fiscal redistribution.
This paper contributes to the income inequality literature that is based on the traditional Kuznets model. Price stability, financial deepening, level of develo
There is an extensive literature noting that high inflation can add to income inequality, and a parallel literature assessing the effect of rising food prices o
This paper examines the effects of inflation and associated financial instability on income distribution. Using both pooled cross country and single country tim
This paper presents and then tests a political economy model to analyze the observed positive relationship between income inequality and inflation. The model's
