Quarterly Journal of Austrian Economics
Monetary Inflation's Effect on Wealth Inequality: An Austrian Analysis
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.
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.