Monetary policy shifts wealth from older to younger generations, study finds.
The article explores how monetary policy affects different generations. By using a model that considers people's income and assets over their lifetimes, the researchers found that changes in monetary policy can shift welfare from older to younger generations. This redistribution is mainly influenced by changes in nominal assets and labor income, rather than real or housing assets. The study emphasizes the importance of understanding how people's financial situations change as they age when analyzing the impact of monetary policy.