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Monetary Inflation's Effect on Wealth Inequality: An Austrian Analysis

  • The Quarterly Journal of Austrian Economics
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Tags Money and BanksMoney and Banking

07/30/2014Zoran Balac

Volume 11, No. 1 (2008)

 

Austrian monetary inflation theory claims that changes in the money supply are disproportionately distributed throughout an economy, and as a result wealth inequality is exacerbated. This study proposes and tests a model illustrating this connection. After testing the model’s validity, this study compares monetary inflation’s effect on several measures of wealth inequality, concluding that not only is monetary inflation a significant variable, but its effect on wealth inequality is more pronounced at the extremities of an income distribution.

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Cite This Article

Balac, Zoran. "Monetary Inflation's Effect on Wealth Inequality: An Austrian Analysis." The Quarterly Journal of Austrian Economics 11, No. 1 (2008): 1–17.

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