The distributional effects of monetary policy: theory and evidence So what do we know about the impact of monetary policy on the distribution of wealth, income and consumption?
A comprehensive study published recently by the National Bureau of Economic Research (NBER) outlines five potential channels by which more accommodative measures might affect inequality.4 The first is the “income composition channel”: while most households rely primarily on earnings from their work, others receive larger shares of their income from business and financial income.