The dynamic effect of macroprudential policies on income inequality: some evidence
DOI:
https://doi.org/10.17811/ebl.12.3.2023.248-265Keywords:
macroprudential policies, income inequalityAbstract
We study the dynamic effects of the adoption of macroprudential policies on income inequality over the period 1990 - 2015. We utilize local projections for horizons up to 5 years, and we document that the implementation of borrower-targeted MAPs increases income inequality since they pose obstacles to the access to credit based on household-specific characteristics; however, some financial institutions-targeted instruments (i.e., capital and reserve requirements) lead to a more equal income distribution.
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