Social and Behavioral Sciences Commons^™

The Discriminatory Effects Of Monetary Policy Among Different Labor Market Demographics, Darren Stanton

Honors Projects in Economics

While great strides have been made in America’s pursuit of racial and gender equality, there is still a clear gap in terms of economic success (Carpenter & Rodgers, 2004). Current research has shown that one factor that could be contributing to this is the adverse effects that contractionary monetary policies designed to achieve a 2% average inflation rate has on these groups in the labor market (Seguino & Heintz, 2012). Existing literature suggests this is because of their lower attachment rate to their jobs, jobs that are more likely to be eliminated when interest rates increase. This research will seek …