Contrary To Continued Claims QE Reduces Inequality

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We’re bombarded with claims that quantitative easing has only benefited the rich. Asset prices have risen, that’s all that’s happened, why are we bailing them out an thereby increasing inequality? That not actually being what has happened:

Household heterogeneity and the transmission of monetary policy in the euro area

Miguel Ampudia, Dimitris Georgarakos, Michele Lenza, Jiri Slacalek, Oreste Tristani, Philip Vermeulen, Gianluca Violante 13 August 2018

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jgh
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jgh

Does this mean I’m rich? Before QE I was warned that my endownment would mature with ÂŁ18,000. When it did mature last year it gave ÂŁ25,000. I *think*…. this is QE-related, so I’ve benefited from QE, so I’m rich?

jgh
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jgh

Does this mean I’m rich? Before QE I was warned that my endownment would mature with £18,000. When it did mature last year it gave £25,000. I *think*…. this is QE-related, so I’ve benefited from QE, so I’m rich?

GR8M8S
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GR8M8S

So does this mean Jezza and his QE for the People is on to something more than a bandwagon? And there is that statement in the conclusion that fiscal policy is better at lowering inequality which would encourage him even more.

GR8M8S
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GR8M8S

So does this mean Jezza and his QE for the People is on to something more than a bandwagon? And there is that statement in the conclusion that fiscal policy is better at lowering inequality which would encourage him even more.

Rhoda Klapp
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Rhoda Klapp

This reads very much like it was designed to produce the headline conclusion no matter what. After all, it is post-facto and nobody can undo the effects of QE now, so let’s try and make it look good for poor people. And of course inequality is not a thing to be worried about.

Spike
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Dropping newly printed banknotes out of helicopters (no matter how fancy the name for it) correlates with a lot of improvements in individual situations. However, everyone (except those inventing fancy names for it) knows that the authorities have destabilized the economy.

The authors say the “direct effect” of inhibiting savings is overwhelmed by the “indirect effect” of higher wages. Never mind that no one wants to invest and achieve: Everyone has more money!!! This is another “study” from the European Central Bank that is in fact a “sales pitch.”