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By Rubens P. Cysne A, Wilfredo L. Maldonado B and Paulo Klinger Monteiro A


present distinct productivities in the production of the consumption good, and differentiated access to transacting assets. The purpose of the analysis is to investigate whether this setting can lead to a positive correlation between inflation and income inequality. Our main result is to show that, provided the productivity of the interest-bearing asset in the transacting technology is high enough, it is true that a positive link between inflation and income inequality is generated. An example is offered to illustrate the mechanism

Topics: Inflation, Gini coefficient, Income inequality, Shopping time, Income distributionInflation and income inequality, A shopping-time approach
Year: 2002
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