TY - BOOK ID - 11948461 TI - Inflation, Inequality, and Social Conflict PY - 2006 SN - 1451864183 1462387136 145198393X 9786613828217 1452776377 1283515768 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Electronic books. -- local. KW - Income distribution -- Econometric models. KW - Inflation (Finance) -- Social aspects. KW - Finance KW - Business & Economics KW - Money KW - Income distribution KW - Inflation (Finance) KW - Econometric models. KW - Social aspects. KW - Natural rate of unemployment KW - Inflation KW - Macroeconomics KW - Political Economy KW - Aggregate Factor Income Distribution KW - Price Level KW - Deflation KW - Personal Income, Wealth, and Their Distributions KW - Political economy KW - Income inequality KW - Personal income KW - Prices KW - Income KW - Economics KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:11948461 AB - This paper presents and then tests a political economy model to analyze the observed positive relationship between income inequality and inflation. The model's key features are unequal access to both inflation-hedging opportunities and the political process. The model predicts that inequality and 'elite bias' in the political system interact to create incentives for inflation. The paper's empirical section focuses on this predicted interaction effect. The identification strategy involves using the end of the Cold War as a source of exogenous variation in the political environment. It finds robust evidence in support of the model. ER -