Monetary policy favors Main Street over Wall Street, impacting asset prices.
The study shows that when it comes to monetary policy, most regular households prefer lower unemployment rates over stable prices. This helps everyday people by providing financial security, but it can hurt wealthy individuals by lowering asset prices. The research used a model that considers different types of households and how they react to changes in the economy. Overall, focusing on reducing unemployment benefits the average person more than the economy as a whole.