QE reduces inequality over medium term – Bank of Canada paper

Bank of Canada
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Quantitative easing increases income and wealth inequality in the short run, while the effects are mitigated in the medium term, a staff paper published by the Bank of Canada finds.

“The [short-term] results are primarily driven by the impact of unconventional monetary policy shocks on financial asset prices and portfolio composition,” the researchers write.

Stefan Hohberger, Romanos Priftis and Lukas Vogel use balance sheet data from the European Central Bank to analyse the impact of QE

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