It's a common view that QE leads to wealth inequality, and this view is largely justified.
Here's a weird fact though: Between Japan, Europe, China, and the United States, there is an *inverse* correlation between the amount of QE they did as a % of GDP, and wealth inequality.
Here's a weird fact though: Between Japan, Europe, China, and the United States, there is an *inverse* correlation between the amount of QE they did as a % of GDP, and wealth inequality.
Japan did the most QE in terms of how long they did it, and what percentage of GDP they did it. And yet, they have among the lowest inequality, and the share of assets among the top 1% actually deceased over the span of doing it. 
On the other hand, the U.S. did the least QE as a percentage of GDP, and yet has the highest wealth inequality among major developed nations.
China and Europe performed middling amounts of QE as a percentage of GDP, and have middling wealth inequality.
China and Europe performed middling amounts of QE as a percentage of GDP, and have middling wealth inequality.
Clearly other variables are involved, including fiscal and geopolitical variables that overwhelm monetary variables.
People try to simplify the situation so that they have one institution to blame, but the real situation is always complex.
My next article is about this subject.
People try to simplify the situation so that they have one institution to blame, but the real situation is always complex.
My next article is about this subject.
