Furthermore, labour earnings at the bottom of the income distribution may be relatively more sensitive to the business cycle; 14 if this is the case, successful countercyclical MP might help low-income households above all, attenuating inequality. This suggests that monetary expansions could well decrease – not increase – inequality.
As the current review comes only two years after the conclusion of the 2018 capital increase, with the capital subscriptions process in the IBRD and IFC having just begun, we support the completion of the 2020 IBRD shareholding review at this stage with no realignment. Similarly, we support the completion of the IFC shareholding review without further analytical work.