The Distributional Impact of Monetary Policy Easing in the UK between 2008 and 2014

The Effects of Quantitative Easing on Income Inequality in Japan

“…In 2012, economists from the Bank of England issued a working paper conceding that QE primarily benefted the top fve percent of households because this segment of British society holds over forty percent of all assets (Bank of England 2012). After a controversial public discourse, the Bank of England reevaluated the research and concluded that QE does not have a clear impact on income inequality (Pugh et al 2018). Additionally, former Federal Reserve Chairman Ben Bernanke, who introduced QE to the United States during the global fnancial crisis, argued that "the efects of monetary policy on inequality are almost certainly modest and transient" (Bernanke 2015).…”

An Investigation into the Spatial Distribution of British Housing Market Activity

“…The second period, not consistent with Stein's projection of the co-movement of price and activity could be a result of the distribution of QE funds favouring London (Bunn et al 2018). Prices in the South reached a point in the post-crisis era where affordability could be beyond what lenders deem as safe, and price is above fundamentals (Duca et al 2021).…”

“…The distributional impact of QE on measured income and wealth between 2008 and 2014 is assessed as minor in proportional terms. In cash terms, London and the South East gained the most, particularly in housing wealth (Bunn et al 2018). Indeed, it is averred that London pulls away from the rest of England and Wales (Gray 2018;Montagnoli and Nagayasu 2015;Richmond 2007).…”

“…Debt has become dislocated from incomes (Gregoriou et al 2014). The distribution of QE funds appears to have favoured London (Bunn et al 2018). Its HPER rose from 7.9 to 12.4 in the period from 2006 to 2017.…”

Does Monetary Policy Affect Income Inequality in the Euro Area?

“…Note that our study considers distributional effects of monetary policy in the short run. Monetary policy is often argued to be neutral in the long run and hence could have a limited long‐term influence on real variables, including income distribution (Bunn, Pugh, and Yeates 2018). Nevertheless, it would be interesting to explore the long‐run evolution of income inequality after a change in monetary policy stance using a different empirical approach and a well‐specified theoretical model (e.g., Jordá, Singh, and Taylor 2020).…”