Central Banking and Inequalities: Old Tropes and New Practices
This paper presents a critical analysis of the stance taken on inequality by two central banks since 2015: the Bank of Canada (BoC) and the Federal Reserve (Fed). The analysis is informed by a computer-assisted discourse analysis of how central bankers from the two institutions position themselves when it comes to issues of inequality. We observe that the position on inequality of the two central banks has changed in recent years and continues to do so. We argue that the stance on inequality taken by the BoC and the Fed suffers from a number of both inconsistencies and shortcomings. On the one hand, the BoC and the Fed claim that monetary policy instruments are too blunt to target specific sectors of the economy. On the other hand, with their response to COVID-19, they have demonstrated that such targeting is possible after all.
Fontan, C., Dietsch, P., Claveau, F. et Dion, J. (2022). Central banking and inequalities: Old tropes and new practices. Dans G. Vallet, S. Kappes et L.-P. Rochon (dir.), Central banking, monetary policy and social responsibility. SocArXiv.