Peter Praet: Monetary policy and the euro area banking system Speech by Mr Peter Praet, Member of the Executive Board of the European Central Bank, at the European Capital Markets Institute (ECMI) Annual Conference "Towards the right policy mix for a thriving European capital market", Brussels, 9 November 2016.
Therefore, monetary policy easing – by stimulating economic activity and creating jobs, increasing wages and enabling savings – can reduce income inequality. This was an important channel after the previous crisis, the Great Recession, and has been again in the present COVID-19 crisis.