That outweighs employment gains
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
7 Concluding Remarks
The unavoidable conclusion from the detailed decomposition exercise and the counterfactual analysis carried out above is that the impact of quantitative easing on the distribution income was at least modestly regressive. Our decomposition results imply that the disequalizing effects of equity returns far outweighed the equalizing effects of employment gains. While these decomposition results cannot be interpreted causally, the counterfactual scenarios presented in the previous section suggest that, for reasonable assumptions about the employment effects of QE, the causal impact of QE on stock prices would have to be implausibly small for the net effect to be distributionally neutral.