But this is an incorrect perception, for two reasons. First, conventional policies also produce differing effects on creditors and debtors. Second, empirical evidence suggests the effects on distribution of both conventional and unconventional policies are in any case limited. In the long run, monetary policy is not an important factor for the distribution of resources within societies.
Distribution is affected more by low-frequency developments such as structural and institutional factors, or fiscal policies such as tax regimes.17 In the short run, monetary policy can influence distribution via two channels: a direct effect related to asset prices and financial income, and an indirect effect related to the macroeconomic impact of expansionary policy on jobs and wages.