The redistributive effects of quantitative easing

As the ECB announced the resumption of quantitative easing in November 2019, it is important to look not only at macroeconomic effects, but also at redistributive effects of quantitative easing. These redistributive effects are based on the consequences of quantitative easing: falling long-term interest rates and risk premia, rising asset prices. The beneficiaries from quantitative easing are therefore borrowers (governments, companies, borrower households) and owners of asset (equities, real estate), who often are "old". The losers from quantitative easing are lenders in bonds (households, directly or via institutional investors), banks and buyers of assets, who often are "young". We can see that the total redistributive effects of quantitative easing are not necessarily positive, since quantitative easing enriches the "old" and impoverishes the "young", low-income households are often invested in bonds, and banks are weakened. Ensuring borrower solvency is obviously very stabilising, but this solvency is therefore accompanied by certain negative redistributive effects.