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"Wealth Inequality Set to Increase in the Short Term": Eight Questions to Kerstin Bernoth

Interview of February 17, 2016

Prof. Bernoth, the European Central Bank (ECB) decided to implement a large-scale bond purchasing program in January 2015 to avert the risk of deflation in the euro area. To what extent might these bond purchases also affect wealth distribution?

Considerable wealth distribution effects may occur through the impact channels of monetary policy because interest rate changes introduced by the central bank and their bond purchases will affect the general level of interest rates and asset prices in the relevant country [...]

The full interview with Kerstin Bernoth is published in DIW Economic Bulletin 7/2016. It is available for download as pdf document (PDF, 97.02 KB).

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