Higher interest rates worsen income inequality, according to research by Haroon Mumtaz and Angeliki Theophilopoulou presented to the annual congress of the European Economic Association in Mannheim in August 2015. Their study also looks at the effect of quantitative easing (QE) on income inequality and concludes that in contrast to conventional policy, QE has probably increased inequality.
© 2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.