In response to Great Recession, the Federal Reserve implemented quantitative easing. Quantitative easing (QE) aided stabilization of the economy and reduction of the liquidity trap. This research evaluates the correlation between QE implementation and increased inequality through the recovery of the Great Recession. The paper begins with an evaluation of the literature focused on QE impacts on financial markets, wages, and debt. Then, the paper conducts an analysis of QE impacts on income, household wealth, corporations and the housing market. The analysis found that the changes in wealth distribution had a significant impact on increasing inequality. Changes in wages were not the prominent cause of changes in GINI post-recession so changes in existing wealth appeared to be a contributing factor. Researching the increases in inequality post-recession provide insight into negative impacts of QE and how to avoid these problems in the future.
Date of Completion
Bachelor of Arts in Economics
Date of Award
Davis, Emily, "Quantitative Easing and Inequality: QE impacts on wealth and income distribution in the United States after the Great Recession" (2019). Economics Theses. 108.