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Inequality hysteresis: what it is and why it matters

BISness

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The Effects of Non-Conventional Monetary Policies on Inequality

In terms of the effects of monetary policy on inequality, do you think that inequality could have also increased because of unconventional monetary policies implemented since the Great Financial Crisis? So actually, the studies that we have that look into these, which were conducted also in other institutions and that we cover in the book, show actually kind of the opposite. There is a very large effect of non-conventional monetary policies. When central bank kept interest rates very low, when they bought a lot of assets, essentially public debt, this gave a boost to asset prices.

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