Price Level Changes and the Redistribution of Nominal Wealth Across the Euro Area
نویسندگان
چکیده
We document the presence of sizable distributional e¤ects from unexpected price level movements in the Euro Area (EA) using sectoral accounts and newly available data from the Household Finance and Consumption Survey. The EA as a whole is a net winner of unexpected price level increases, with Italy, Greece, Portugal and Spain being the biggest bene ciaries, and Belgium and Malta being the largest losers. Governments are net winners of ination, while the household (HH) sector is a net loser in the EA as a whole. HHs in Belgium, Ireland, Malta and Germany incur the biggest per capita losses, while HHs in Finland and Spain turn out to be net winners of ination. Considerable heterogeneity exists also within the HH sector: relatively young middle class HHs are net winners of ination, while older and richer HHs are losers. As a result, wealth inequality in the EA decreases with unexpected ination, although in some countries (Austria, Germany and Malta) inequality increases due to presence of relatively few young borrowing HHs. We document that HHs ination exposure varies systematically across countries, with HHs in high ination EA countries holding systematically lower nominal exposures. JEL-Class. No.: E31,D31,D14
منابع مشابه
Price Level Changes and the Redistribution of Nominal Wealth Across
We document the presence of sizable distributional e¤ects from unexpected price level movements in the Euro Area (EA) using sectoral accounts and newly available data from the Household Finance and Consumption Survey. The EA as a whole is a net winner of unexpected price level increases, with Italy, Greece, Portugal and Spain being the biggest bene ciaries, and Belgium and Malta being the large...
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