Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299089 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Central Banking Theory and Practice [ISSN:] 2336-9205 [Volume:] 12 [Issue:] 3 [Year:] 2023 [Pages:] 199-217
Publisher: 
Sciendo, Warsaw
Abstract: 
This paper illustrates a case where an increase of the in-terest rates improves the economic activity and reduces incomeinequality. This theoretical exercise deals with a simple model ofdisequilibrium with accountant identities of budget constraints. Inaddition, and following previous models, the effect of the COVID-19shock is considered, by reflecting asymmetric repercussions that in-crease income inequality. A simple empirical exercise confirms someof the previous results. The proposed explanation is that, for the euroarea, this shock has affected more middle-income households suchas the retailers harmed by the compulsory lockdown who have in-creased their debts.
Subjects: 
Monetary policy
Income inequality
Financial sector
Black Swan
COVID-19
Unemployment
JEL: 
E52
E25
E58
G21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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