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Unconventional monetary policy and wealth inequality: evidence from the US

Author

Listed:
  • Thomas Gries

    (Paderborn University)

  • Lukas Wiechers

    (Paderborn University)

  • Sebastian José Luna-Victoria

    (Paderborn University)

Abstract

We analyze the effect of unconventional monetary policy (UMP) on the distribution of wealth in the United States between 2007 and mid-2022. We find that UMP increases the net wealth of the upper percentiles relative to the bottom 50% percentile. However, UMP is estimated to affect the wealthiest's overall asset holdings less than their net wealth, highlighting the importance of future research into the liability side. On the asset side UMP induces a significant portfolio rebalancing. The wealthiest's relative gain is not restricted solely to holdings in equities and funds, but also to holdings in real estate and pension entitlements.

Suggested Citation

  • Thomas Gries & Lukas Wiechers & Sebastian José Luna-Victoria, 2023. "Unconventional monetary policy and wealth inequality: evidence from the US," Economics Bulletin, AccessEcon, vol. 43(4), pages 1865-1874.
    • Handle: RePEc:ebl:ecbull:eb-23-00309
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inequality; Unconventional Monetary Policy; Wealth Distribution; Quantitative Easing; Vector Autoregression;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • D6 - Microeconomics - - Welfare Economics

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