The Distributional Imp 4 Ct of Inflation and Anti - Inflation Policy

This paper reviews evidence regarding the distrib~tional impa~t of inflation on p~rchasing power, iucome, and weglth, and analyzes the impact of anti-inflation poLicy and its interaction with distribution policy. The evidence suggests that recent inflation has worsened relative economic position of low-in~ome families. A contractionary fis~glmonetary policy, wh~ch seems likely to be'the keystone of the gnti-inflation program to be followed in the foreseeable future, would substantially worsen the economic position of low-income families unLess major redistributional policies are enacted gt the same time .