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Vem betalar för prishöjningarna? - Inflation, ojämlikhet och makt

Wallin, Julius LU (2023) NEKH04 20231
Department of Economics
Abstract
This paper examines the relationship between inflation, inequality, and political power. The author argues that the redistributive effect of the inflation tax is a product of four channels: real wages, the balance sheet, debt and fiscal policy. The role of elite bias in politics, and its effect on inflation combating measures is also investigated. One interesting finding is that inflation had a regressive distributional effect between 1990-2019, which corresponds to previous findings on the inflation tax during 1965-1990. The paper does not find evidence of elite bias influencing measures combating or compensating for inflation. Overall, this paper underscores the importance of considering the four channels of the inflation tax when... (More)
This paper examines the relationship between inflation, inequality, and political power. The author argues that the redistributive effect of the inflation tax is a product of four channels: real wages, the balance sheet, debt and fiscal policy. The role of elite bias in politics, and its effect on inflation combating measures is also investigated. One interesting finding is that inflation had a regressive distributional effect between 1990-2019, which corresponds to previous findings on the inflation tax during 1965-1990. The paper does not find evidence of elite bias influencing measures combating or compensating for inflation. Overall, this paper underscores the importance of considering the four channels of the inflation tax when responding to inflation in order to minimize economic inequality. (Less)
Please use this url to cite or link to this publication:
author
Wallin, Julius LU
supervisor
organization
course
NEKH04 20231
year
type
M2 - Bachelor Degree
subject
keywords
Macroeconomics, inequality, inflation, redistribution, political economy
language
Swedish
id
9131143
date added to LUP
2024-01-22 15:50:39
date last changed
2024-01-22 15:50:39
@misc{9131143,
  abstract     = {{This paper examines the relationship between inflation, inequality, and political power. The author argues that the redistributive effect of the inflation tax is a product of four channels: real wages, the balance sheet, debt and fiscal policy. The role of elite bias in politics, and its effect on inflation combating measures is also investigated. One interesting finding is that inflation had a regressive distributional effect between 1990-2019, which corresponds to previous findings on the inflation tax during 1965-1990. The paper does not find evidence of elite bias influencing measures combating or compensating for inflation. Overall, this paper underscores the importance of considering the four channels of the inflation tax when responding to inflation in order to minimize economic inequality.}},
  author       = {{Wallin, Julius}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Vem betalar för prishöjningarna? - Inflation, ojämlikhet och makt}},
  year         = {{2023}},
}