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- This thesis analyses the effects on income inequality deriving from conventional monetary policy. We proceed via a rigorous implementation of a two agents New Keynesian (TANK) model in which a simple measure of income inequality is embedded. Following the model parametrization, the impulse response functions show that restrictive monetary policy shocks lead to soaring income inequality levels. Furthermore, we observe that such levels have a volatility that remains smaller compared to aggregate consumption inequality levels. Finally, we contextualize our findings using income data from 1980-2008 for the USA and Italy. The historical data confirm our theoretical findings and highlight a more pronounced income inequality trend in the USA during the period considered. Eventually, we identify two key channels responsible for the phenomena observed: the savings redistribution channel and the income composition channel.