IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v66y2019i5p535-558id407.html
   My bibliography  Save this article

Effects of Unconventional Monetary Policy on Income and Wealth Distribution: Evidence from United States and Eurozone

Author

Listed:
  • Juan-Francisco Albert
  • Nerea Gómez-Fernández
  • Carlos Ochando

Abstract

As an answer to the “Great Recession” and Zero Lower Bound problem, main central banks had to use unconventional monetary policy (UMP). This research focuses on the distributive effects of these measures on household income and household wealth in the United States of America (USA) and the Eurozone. For this purpose, this paper presents four models that were constructed using the Structural Vector Autoregressive methodology (SVAR). The results suggest that the UMPs applied by the Federal Reserve (FED) in the USA could increase wealth and income inequality through the portfolio channel. However, the same results were not observed in the Eurozone. Key words: United States of America, Eurozone, Income inequality, Wealth inequality, Unconventional monetary policy.JEL: E52, E58, D63. Uticaji nekonvencionalne monetarne politike na raspodelu dohotka i bogatstva: Dokazi iz Sjedinjenih Država i Evrozone Kao odgovor na „Veliku recesiju“ i problem sa nultom donjom granicom, glavne centralne banke su morale koristiti nekonvencionalnu monetarnu politiku (UMP). Ovo istraživanje se fokusira na distributivne efekte ovih mera na prihod i bogatstvo domaćinstava u Sjedinjenim Američkim Državama (SAD) i evrozoni. U tu svrhu, ovaj rad predstavlja četiri modela koja su izgrađena pomoću strukturne vektorske autoregresivne metodologije (SVAR). Rezultati sugerišu da bi UMP-ovi koje je primenila Federalna banka (FED) u USA mogli povećati bogatstvo i nejednakost prihoda kroz portfolio kanal. Međutim, isti rezultati nisu primećeni u evrozoni. Ključne reči: Sjedinjene Američke Države, evrozona, nejednakost u dohotku, nejednakost u bogatstvu, nekonvencionalna monetarna politika.

Suggested Citation

  • Juan-Francisco Albert & Nerea Gómez-Fernández & Carlos Ochando, 2019. "Effects of Unconventional Monetary Policy on Income and Wealth Distribution: Evidence from United States and Eurozone," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 66(5), pages 535-558.
    • Handle: RePEc:voj:journl:v:66:y:2019:i:5:p:535-558:id:407
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/407/565
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    United States of America; Eurozone; income inequality; wealth inequality; unconventional monetary policy;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:voj:journl:v:66:y:2019:i:5:p:535-558:id:407. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.