Friday, October 14, 2016

Monetary Easing Exacerbates Inequality

See http://www.bloomberg.com/news/articles/2016-10-14/land-with-longest-stretch-of-negative-rates-finds-rich-are-getting-richer-faster

Years of ultra low rates have benefited the rich more than the poor.  Lower interest costs have coincided with a significant rise in capital income. The wise men point out that “lower rate expenses” are one of the reasons why equity income has risen more than disposable income, thus adding to increased inequality.

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