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ECB monetary policy could temporarily ease inequality in Europe

Monetary policy measures can improve welfare, contribute to reducing income disparities

Reuters  |  Frankfurt 

The European Central Bank's ultra-easy monetary policy may actually reduce income inequality in Europe, ECB Vice President Vitor Constancio said on Tuesday, rejecting the argument that asset buys disproportionately benefit the wealthy. Constancio said the ECB's stimulus measures lower unemployment and thus increase disposable income for Europe's poorest, compressing inequality, at least in the short term. "This result confirms that, from the distributional perspective, the main impact of expansionary monetary policies is on the reduction of unemployment with ...

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First Published: Tue, August 22 2017. 20:43 IST