abstract: 'Previous work on the politics of monetary policy has focused on the role

  of distributive motives stemming from individual characteristics such as

  income or factoral/sectoral interests in citizens'' formation of monetary

  policy preferences. However, the existing literature has paid little

  attention to how a country''s overall distributive context, namely, its

  level of economic inequality, affects citizens'' preferences vis-a-vis

  price stability and employment. This article argues that as inequality

  pushes more citizens below a society''s average income, there is more

  demand for redistribution through higher employment and increased fiscal

  spending, each of which can be better supported by expansionary monetary

  policy. This means that inequality makes citizens more tolerant of

  inflation. This study uses the International Social Survey Program, the

  Integrated Values Surveys, and the Comparative Study of Electoral

  Systems, which together include 293,100 respondents from 53 countries

  between the years 1976 and 2016 to demonstrate that overall, inequality

  significantly moderates citizens'' inflation aversion.'
affiliation: 'Kim, H (Corresponding Author), Michigan State Univ, 220 Trowbridge Rd,
  E Lansing, MI 48824 USA.

  Kim, Hyunwoo, Michigan State Univ, 220 Trowbridge Rd, E Lansing, MI 48824 USA.'
author: Kim, Hyunwoo
author-email: hwkim@msu.edu
author_list:
- family: Kim
  given: Hyunwoo
da: '2023-09-28'
doi: 10.1111/ecpo.12210
earlyaccessdate: FEB 2022
eissn: 1468-0343
files: []
issn: 0954-1985
journal: ECONOMICS \& POLITICS
keywords: Central Bank; inequality; macroeconomic policy; populism; redistribution
keywords-plus: 'MONETARY-POLICY; INCOME-DISTRIBUTION; POLITICAL-ECONOMY; REDISTRIBUTION;

  PREFERENCES; DYNAMICS; DEMAND; CONSEQUENCES; UNEMPLOYMENT; TAXATION'
language: English
month: MAR
number: '1'
number-of-cited-references: '106'
orcid-numbers: Kim, Hyunwoo/0000-0001-9395-2710
pages: 65-96
papis_id: 25631acee61490e9cb09e6550ddc19dc
ref: Kim2023microfoundationmacro
researcherid-numbers: Kim, Hyunwoo/AGZ-1861-2022
times-cited: '6'
title: 'The microfoundation of macroeconomic populism: The effects of economic inequality
  on public inflation aversion'
type: Article
unique-id: WOS:000749612000001
usage-count-last-180-days: '1'
usage-count-since-2013: '6'
volume: '35'
web-of-science-categories: Economics; Political Science
year: '2023'