A widely heard criticism of the Federal Reserve’s purchases of trillions of dollars in bonds, or quantitative easing, is that the Fed increased inequality by pushing up prices of stocks, bonds, and other assets already in the hands of the wealthy. Did it? What role does monetary policy play in influencing the distribution of income and wealth? Would alternative policies have had different distributional effects?
My favorite paper was presented by the excellent teacher and researcher Erik Hurst:
Hurst showed many stimulating slides, including this one:
Here is a summary of all three papers.