Central Banking, Monetary Policy and Income Distribution

Edited by Sylvio Kappes, Assistant Professor, Federal University of Alagoas, Brazil, Co-Editor, Review of Political Economy and Co-Director, Monetary Policy Institute, Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy, Founding Editor Emeritus, Review of Keynesian Economics and Director, Monetary Policy Institute and Guillaume Vallet, Full Professor, Université Grenoble Alpes and Research Fellow, Centre de Recherche en Economie de Grenoble (CREG), France

• Contents:Introduction to Central Banking, Monetary Policy and IncomeDistribution 1Sylvio Kappes, Louis-Philippe Rochon and Guillaume ValletPART I THEORY1 A primer on monetary policy and its effect on incomedistribution: a heterodox perspective 20Louis-Philippe Rochon and Mario Seccareccia2 Monetary policy and functional income distribution:a Marxist view 35Marcelo Milan3 Savings glut, secular stagnation, demographic reversal,and inequality: beyond conventional explanations of lowerinterest rates 57Matías Vernengo4 The evolution of monetary institutions and of the theoryof money: the value of a monetary theory of productionand distribution 81Michel Betancourt, Santiago Capraro, Carlo Panico andLuis Daniel Torres-González5 Monetary policy and the distribution of income ina transfer theory of debt 114Jan ToporowskiPART II EVIDENCE6 Monetary policy and income distribution 128James K. Galbraith7 The rate of interest and income distribution: anexamination of the Pasinetti index in Latin America 139Noemi Levy-Orlik and Jorge Bustamante8 Why central bank policy is not income-distribution‘neutral’: history, theory and practice 164Mario Seccareccia and Guillermo Matamoros RomeroPART III POLICY9 Advancing the monetary policy toolkit through outrighttransfers and tiered reserve remuneration 191Sascha Bützer10 On interest and interest-rate policy 242Massimo Pivetti11 The distributional impacts of inflation-targeting strategies 261Sergio RossiIndex

‘Inequality in the distributions of income and wealth continues to rise. Meanwhile, since the global financial crisis, central bankers have become aware that in a monetary-production economy, there’s more to life than “fine tuning” an economy with reference to an inflation target. The time is therefore ripe for reinvigoration of research into the links between monetary policy and distribution. And with its clear focus throughout on the interest rate–income distribution nexus, this book delivers.’