Income inequality and inflation: The cross-country evidence

Fahim A. Al-Marhubi

Research output: Contribution to journalArticlepeer-review

15 Citations (Scopus)


Different strands of the political economy approach to macroeconomic policy imply a link between income inequality and inflation. This article tests this proposition using a newly assembled data set on income distribution. The results show that income inequality is associated with higher inflation. This association, although not economically large, holds for democracies as well as nondemocracies. Sensitivity analysis suggests that the results are not due to measurement error, reverse causation, or omitted variables.

Original languageEnglish
Pages (from-to)428-439
Number of pages12
JournalContemporary Economic Policy
Issue number4
Publication statusPublished - 2000

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Economics and Econometrics
  • Public Administration


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