Brandon Parsons Co-Authors Influential Study on Monetary Policy and Income Inequality in Developing Nations

Brandon Parsons, a faculty member at Pepperdine Graziadio Business School, is contributing to global economic discourse as co-author of a new peer-reviewed study published in the open-access journal Economics & Sociology. Titled "Monetary Policy, Inflation, and Income Inequality in Developing Countries," the study analyzes data from 25 developing nations between 2000 and 2022, offering critical insights into how monetary policy shapes income distribution.

Parsons’ research finds that both contractionary and expansionary monetary policies influence income inequality, with high interest rates and inflation disproportionately burdening lower- and middle-income groups while benefiting the top earners. The wealthiest decile, Parsons notes, is better positioned to capitalize on inflation through asset appreciation and pricing power, whereas most of the population sees their income share decline.

The study also highlights the redistributive role of government spending and public investment. Parsons demonstrates that increased public expenditures have a positive impact on income shares across nearly all deciles, excluding the top 10%, providing a compelling case for more progressive fiscal interventions.

In addition to presenting new empirical evidence, Parsons’ work explores the broader implications of inequality for economic growth and social stability. Rising income inequality, the study warns, can suppress consumer demand, increase social tensions, and disrupt public services, especially in nations with limited access to formal financial systems.

Through robust analysis and timely insights, Parsons’ work contributes to a growing body of literature calling for more inclusive, data-driven approaches to economic policy in developing regions. His findings offer valuable guidance for governments and global institutions aiming to promote shared prosperity and long-term stability.

Read the full study here.