Assets Quote by Gerald Epstein
“Initially, QE contributed to a pretty significant increase in inequality. It raised asset prices, which are owned primarily by the wealthy, while having relatively small if any positive impacts on bank lending, employment, wages or economic growth, so ordinary people haven't had much help. By the third round of QE in 2012-2014, the effects had likely muted quite a bit. There were probably not big impacts on asset prices from QE and the positive effects on employment growth might have strengthened somewhat.”
About This Quote
Source Speech: Economic Policy Discussion, 2015, United States Federal Reserve Chair
Quantitative easing initially widened wealth gaps by boosting asset prices owned by the rich, with limited benefits to broader economic factors; later rounds showed diminishing impact on assets and modest employment gains.
In simple terms: QE first increased inequality, later effects softened.
Key Takeaway
Recognize QE’s unequal effects and monitor future policy.
Themes
economics
inequality
monetary policy
financial markets
Mood
analytical
concerned
Type
policy
economic
When to use this quote
- central bank policy design
- investment strategy
- public budgeting
- social welfare analysis
Key Concepts
wealth distribution
asset price inflation
employment effects
Questions to Reflect On
- How can policy balance asset price stability with broader economic equity?
- What alternative tools could reduce inequality?
A Different Perspective
QE may still favor asset owners despite reduced impact on prices.
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