Inflation benefits poor, hurts rich: Central Bank of Chile paper
A Central Bank of Chile research paper published on Saturday finds that a higher level of anticipated inflation has a positive effect on the welfare of the poor but negatively impacts those better off.
Sofía Bauducco, the paper's author, examines the optimal monetary and fiscal policy mix in a model in which agents are subject to idiosyncratic uninsurable shocks to their labour productivity to identify the main effects of anticipated inflation on various agents.
Bauducco finds that inflation
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