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Zoekresultaten

Zoekopdracht: faculteit: "FEB" en publicatiejaar: "1992"

AuteursR.M.W.J. Beetsma, F. van der Ploeg
TitelDoes inequality cause inflation? The political economy of inflation, taxation and government debt
UitgeverUniversity of Amsterdam (UvA) - University of Tilburg
PlaatsAmsterdam, Tilburg
Jaar1992
SerietitelCEPR Discussion Paper
Serienummer741
FaculteitFaculteit Economie en Bedrijfskunde
Instituut/afd.FEB: Amsterdam School of Economics Research Institute (ASE-RI)
TrefwoordenForeign exchange; Monetary policy
SamenvattingA democratic society in which the distribution of wealth is unequal elects political parties which tend to represent the interests of the poor. The clientele of such governments favor unanticipated inflation taxes to erode the real value of debt service and redistribute income from the rich to the poor. Consequently, inequality sows the seeds for inflation. Regressions confirm the empirical predictions of the model and show a strong positive relationship between the inflation rate and inequality, for a cross-section of democratic countries.
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