Central Bank Policies, Financial Sector, and Inequality
Provider | Czech Science Foundation |
Programme | Standard projects |
Project code | 24-12098S |
Participants | Faculty of Social Sciences Charles University |
This research project aims to address the gaps in the literature on the unintended consequences and spillovers of central bank policies, such as monetary policy, macroprudential policy, and financial regulations, on income and wealth inequality. These policies are typically implemented through measures affecting the financial sector and asset markets, which play a key role in the development of inequality. We aim to provide a more comprehensive understanding of the link between central bank policies, the financial sector, and inequality along various dimensions, using both household-level and country-level data. Household-level data will help us with identification of vulnerable groups, examination of the dynamics of inequality, and understanding of the micro-foundations of inequality. A country-level analysis will allow us to explore medium- to long-term effects across different phases of the business and financial cycle and the role of international spillovers.
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