BICEPS/SSE Riga Research Seminar: Wealth Distribution and Monetary Policy

We kindly invite you to the BICEPS/SSE Riga research seminar! It will take place on Thursday, March 5 at 17.00 in room 611 with the presentation:

“Wealth Distribution and Monetary Policy” by Ludmila Fadejeva (Bank of Latvia), co-authored with Zeynep Kantur (Bilkent University).


We observe differences in net wealth distribution by age among European countries. Western EU countries’ net wealth distribution is consistent with the life cycle hypothesis. However in Eastern EU countries, wealth distribution is skewed towards younger ages. The aim of the paper is twofold: first we study the characteristics of economies leading to differences in net wealth distribution by age; second, we evaluate the impact of these differences on the transmission of monetary policy. To do so, we develop a modified New Keynesian model where the demand side is represented by a multi-period overlapping generations setup and the supply side of the economy follows a New Keynesian framework. The model is used to analyze the interaction between monetary policy and wealth accumulation originated by demo- graphics and productivity-gap among generations in a coherent general equilibrium model. Household Finance and Consumption Survey (HFCS) database is used to calibrate the model for two groups of European countries. We find that the shape of net wealth distribution by age has an important bearing on the effectiveness and hence conduct of monetary policy.


Next seminars

2020-03-19         “Modelling the population of collusive firms” by Chloé Le Coq (SITE, University of Paris II Panthéon-Assas). Seminar is CANCELLED!

2020-04-02         “Local banks as difficult to replace SME lenders: Evidence from bank corrective programs” by Oskar Kowalewski (IESEG, Paris). Seminar is CANCELLED!


No prior registration for the seminar is necessary. For any questions about the seminar, or if you have a colleague that would like to be added to the distribution list, please write to Nicolas Gavoille.