Quantitative easing and median income

a state-level analysis

Edmond Berisha, John Meszaros, Zaman Zamanian

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Due to the Great Recession, the Federal Reserve engaged in unconventional monetary policy (QE) to fight the effects of the economic downturn. Literature asserts that QE did have impacts on economic growth and helped alleviate the effects of the recession. Recently, critics have asserted that the benefits of QE may not have been equally distributed across households. In this paper, we build a state-level dataset to investigate the dynamics of QE measures and median income across the U.S states. The findings indicate that, for the period 2008 to 2014, there is statistical evidence that increases in the Federal Reserve’s balance sheet correspond with higher nominal median income. However, once we adjust for inflation, the results become statistically insignificant and the impact of QE on median income becomes almost zero.

Original languageEnglish
Pages (from-to)4564-4575
Number of pages12
JournalApplied Economics
Volume51
Issue number42
DOIs
StatePublished - 8 Sep 2019

Fingerprint

Median
Quantitative easing
Income
Federal Reserve
Inflation
Recession
Household
Great Recession
Economic downturn
Economic growth
Unconventional monetary policy
Balance sheet
U.S. States

Keywords

  • Median income
  • macroeconomic policy
  • unconventional monetary policy

Cite this

Berisha, Edmond ; Meszaros, John ; Zamanian, Zaman. / Quantitative easing and median income : a state-level analysis. In: Applied Economics. 2019 ; Vol. 51, No. 42. pp. 4564-4575.
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Quantitative easing and median income : a state-level analysis. / Berisha, Edmond; Meszaros, John; Zamanian, Zaman.

In: Applied Economics, Vol. 51, No. 42, 08.09.2019, p. 4564-4575.

Research output: Contribution to journalArticleResearchpeer-review

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