Abstract
The main objective of this study is to investigate the impact of monetary policy shock on income
inequality in Brazil. To estimate the Structural Vector Autoregressive (SVAR) model, time series
data is gathered from the first quarter of 1998 to the last quarter of 2021. Results from the SVAR
model indicated that the impulse response of income inequality to a positive shock in monetary
policy rate is positive and significant. The implication is that contractionary monetary policy
propagates income inequality through earning heterogeneity and saving redistribution channels.
A positive shock in private credit reduces income inequality both in the short run and long run.
Moreover, the response of income inequality to a shock in inflation and unemployment rate is
positive and significant. Lastly, the results of the variance decomposition factor revealed that
36.19 %, 17.8 %, and 4 % of the variation in income inequality came from private credit, real
GDP growth, and unemployment rate respectively. Any policy that targets fair distribution of
income in Brazil should enhance access to credit for many of the poor and decrease the rate of
unemployment.
la date de réponse | 30 juin 2023 |
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langue originale | Anglais |
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L'institution diplômante | |
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Superviseur | Yuliya Rychalovska (Promoteur) |
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Monetary Policy and Income Inequality in Brazil: Structural VAR Approach
MERIED, E. (Auteur). 30 juin 2023
Student thesis: Master types › Master de spécialisation en économie internationale et du développement