Has monetary policy made you happier?

Philip Bunn, Andrew Haldane and Alice Pugh ()
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Alice Pugh: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH

No 880, Bank of England working papers from Bank of England

Abstract: Concerns were raised about the distributional impact of the loosening in UK monetary policy following the financial crisis. We assess the impact of this loosening on well-being using household-level data and estimated utility functions. The welfare benefits are found to have been positive, in aggregate and across most of the household distribution, relative to what otherwise would have happened. They are significantly larger than when looking at financial factors alone due to the non-financial benefits of lower unemployment and financial distress. Most people were made better-off in welfare terms from the monetary loosening, rich and poor, although the young have benefited more than the old.

Keywords: Monetary policy; households; inequality; well-being (search for similar items in EconPapers)
JEL-codes: D12 D31 E52 E58 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2020-07-17
New Economics Papers: this item is included in nep-cba, nep-hap, nep-mac, nep-mon and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:0880

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