TY - JOUR
T1 - Quantitative easing and median income
T2 - a state-level analysis
AU - Berisha, Edmond
AU - Meszaros, John
AU - Zamanian, Zaman
PY - 2019/9/8
Y1 - 2019/9/8
N2 - 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.
AB - 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.
KW - Median income
KW - macroeconomic policy
KW - unconventional monetary policy
UR - http://www.scopus.com/inward/record.url?scp=85067271246&partnerID=8YFLogxK
U2 - 10.1080/00036846.2018.1564118
DO - 10.1080/00036846.2018.1564118
M3 - Article
AN - SCOPUS:85067271246
SN - 0003-6846
VL - 51
SP - 4564
EP - 4575
JO - Applied Economics
JF - Applied Economics
IS - 42
ER -