DISINFLATION, INEQUALITY, AND WELFARE IN A TANK MODEL.

We investigate the redistributive and welfare effects of disinflation in a two‐agent New Keynesian model characterized by limited asset market participation and wealth inequality. We highlight two key mechanisms driving our long‐run results: (1) the cash in advance constraint on firms working capita...

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Bibliographic Details

Published in:	Economic Inquiry Vol. 58; no. 3; pp. 1297 - 1314
Main Authors:	Tirelli, Patrizio, Ferrara, Maria
Format:	Article
Published:	Wiley-Blackwell Jul2020
Subjects:	Keynesian economics Labor demand Price deflation Working capital Dividends
Online Access:	View this record in EBSCOhost