Does Quantitative Easing Affect People's Personal Financial Situation and Economic Inequality? The View of the German Population

Arbeitspapier

Using representative survey data collected in 2018, I study how laypersons in Germany perceive the effects of quantitative easing (QE) on their personal financial situation and on national economic inequality. Almost 40% think that their economic situation is unaffected by QE, whereas 20% and 6% believe that QE has made them worse off or better off, respectively. Regarding economic inequality, about one-third of the population is of the opinion that QE contributes to inequality, only 10% think it does not, and 13% cannot perceive an impact. These groups with the different views are characterised using multivariate ordered logit models. First, respondents who feel that their personal economic situation has deteriorated as a result of QE tend to be savers and those with better objective knowledge about monetary policy affairs, whereas those who feel their situation has improved have more trust in the ECB and support conservative (CDU/CSU) and liberal (FDP) parties. Second, the view that QE increases economic inequality in Germany is favoured by Left Party supporters, East Germans, and those with a relatively high level of monetary policy knowledge, whereas those who have more trust in the ECB have the opposite view. Third, persons with a high level of monetary policy knowledge and formal education are more likely to answer the questions on the effects of QE.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 23-2020

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Central Banks and Their Policies ; Macro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy‡ ; Personal Income, Wealth, and Their Distributions
• Thema: Economic inequality ; income distribution ; quantitative easing ; monetary policy ; ECB ; population survey ; Germany

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hayo, Bernd
• Ereignis: Veröffentlichung
• (wer): Philipps-University Marburg, School of Business and Economics
• (wo): Marburg
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/234721
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ