But this does not mean that, as monetary policy makers, we should ignore it. This was one of the key messages we heard from the general public and representative groups when we conducted our own ‘listening exercises’ as part of the ECB’s 2021 strategy review.
To the extent that monetary policy has significant redistributive effects, it will of course impact inequality, at least in the short term. But an equally – if not more – important issue is how inequality can also impact monetary policy.