Working Paper 17-16

Monetary Policy and Inequality

Pedro Amaral | Federal Reserve Bank of Cleveland

Published June 15, 2017

This Commentary examines the link between monetary policy and income and wealth inequality by reviewing the theoretical channels that have been proposed and examining the empirical evidence on their importance. The analysis suggests that the magnitude of any redistributive consequences of conventional monetary policy seems to be small. Evidence that unconventional monetary policies have led to increases in inequality is still inconclusive.

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