IMF Staff Papers Vol. 48, No. 1 © 2001 International Monetary Fund
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Income Inequality: Does Inflation Matter?
ˇ ˇ ALES BULÍR* This paper contributes to the income inequality literature that is based on the traditional Kuznets model. Level of development, state employment, fiscal redistribution, and price stability are found to improve income inequality in a given country. The positive impact of price stability on income distribution is nonlinear. The reduction in inflation from hyperinflationary levels significantly lowers income inequality, while further reduction tow
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