Financial institutions

FEDS Paper: Income Mobility of the Top One Percent

David Splinter and Jeff LarrimoreCirculation into and out of the top one percent is pronounced in the U.S. One third exit after a year and two-thirds exit after a decade. This mobility lowers top income shares when shifting from annual to multi-year income measures. Intragenerational mobility over two decades lowers recent top one percent fiscal income shares by over 10 percent. Two-decade mobility reduces top 0.1% shares by over 20 percent, top 0.01% shares by 30 percent, and top 0.001% shares by 40 percent.

What regional data tell us about the euro area Phillips curve

Using regional data for 11 euro area countries from 1999 to 2023, instead of country-level data, we find that inflation still responds to economic slack, but this relationship is more modest and largely shaped by inflation expectations. This implies that traditional demand-side central bank policies may have limited direct effects on inflation, highlighting that anchoring expectations is essential for effective monetary policy transmission.

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