By far the most relevant short-term distributional implication of expansionary monetary policy remains that, by stimulating the economy, it positively affects the incomes of the less well-off, whose jobs and wages are more sensitive to cyclical fluctuations.
With regard to final demand, net exports (real exports minus real imports) continue to decline and business fixed investment is also decreasing. Housing investment remains sluggish and public investment is on a downward trend. Moreover, private consumption is weakening recently. Industrial production continues to decline considerably, reflecting these developments in final demand and the still strong excessiveness in inventories mainly in materials.