Focusing exclusively on the interests associated with deposits is mistaken: monetary policy can generate distributional effects through a number of other income- and wealth-related channels, 7 and if we are to determine how well grounded the criticisms are, we clearly need to develop a holistic view of how these channels work.
First of all, monetary expansions normally raise the prices of some financial assets; 8 there is ample evidence, in fact, that while QE has indeed compressed the yields on a range of longterm bonds, it has raised the prices of shares. 9 Second, looking beyond finance, real assets like housing are likely to play a key role.