14, Issue 4, pages 871–906 and Adam, K. and P. Tzamourani (2016), “Distributional consequences of asset price inflation in the euro area", European Economic Review, Elsevier, Vol. 89(C), pages 172–192. Coibion et al. (2017) estimate in the U.S. data that contractionary monetary policy increases inequality in labour earnings, total income and consumption.
But with the economy projected to return to its production capacity in the second half of this year and with further easing of pressures from housing prices, upward pressure on core inflation is expected to moderate, bringing core inflation back to 2 per cent by the end of 2007.