Only fiscal policy can solve---any change to monetary policy is disequalizing
Montecino and Epstein 17 – Department of Economics, UMass Amherst; Department of Economics and Political Economy Research Institute (PERI), UMass Amherst
Juan Antonio Montecino and Gerald Epstein, “Did Quantitative Easing Increase Income Inequality?” Publisher, 4-24-17, https://www.cepweb.org/wp-content/uploads/2017/11/Montecino-paper.pdf
This suggests a paradox. Given the current structure of the economy and monetary policy strategies, both loose and tight monetary policy are likely to be disequalizing. Future research should focus on better understanding the reason for this paradoxical situation. It is likely that more direct tools of monetary policy are needed. Perhaps more importantly, fiscal policy, and labor market policies such as changes in labor laws, tax laws, and minimum wage legislation will be needed to reduce the massive levels of inequality that we are experiencing today.