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Rey, H. (2015). Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence. NBER Working Paper No. 21162.

has been cited by the following article:

• TITLE: Monetary Policy and Income Inequality: A Nonlinear Dynamical Systems Approach

  AUTHORS: Ashutosh Sharma

  KEYWORDS: Monetary Policy, Income Inequality, Nonlinear Dynamics, Bifurcation, Minsky Moment

  JOURNAL NAME: Theoretical Economics Letters, Vol.15 No.2, April 7, 2025

  ABSTRACT: This paper develops a nonlinear macroeconomic model to analyze how unconventional monetary policy (QE, negative interest rates) exacerbates income variability through asset price inflation and wage stagnation. Using differential equations, bifurcation analysis, and empirical calibration to U.S./EU data (2008-2023), I demonstrate that central bank interventions create fractal instability in the wealth distribution. Results reveal a critical threshold beyond which fiscal inequality becomes irreversible without fiscal redistribution. The study integrates Minsky’s financial instability hypothesis with Keen’s debt-driven collapse frameworks, offering policy prescriptions for mitigating systemic risk.