Land With Longest Stretch of Negative Rates Finds Rich Are Getting Richer Faster
Women walk past a person sleeping on a bench at the Venice Beach boardwalk in Los Angeles, California, on Oct. 9, 2015.
Photographer: Patrick T. Fallon/BloombergWise men from the land with the world record in subzero rates have weighed in on the debate about the effects of loose monetary policy on income distribution.
According to the latest report from the Danish Economic Council, a fiscal policy watchdog made up of academics commonly known as the "wise men," years of ultra low rates have benefited the rich more than the poor.
As the chart shows, lower interest costs have coincided with a significant rise in capital income. The wise men point out that “lower rate expenses” are one of the reasons why equity income has risen more than disposable income, thus adding to increased inequality.