Sunday, August 07, 2016

How The Federal Reserve's QE 
Has Contributed to Inequality
People in America get really angry at the Federal Reserve & at the "money system" in general during economic crises. The Fed draws hostility because of its power, its insulation from democratic accountability, its lack of transparency, & because of its historical & structural connections to finance. It has a lot of power in the economy because it has a big impact on the supply and cost of credit, that is, interest rates. It also plays a key role in supervising banks and historically has seemed to take it easy on the banks when it shouldn't have, such as in the lead up to the financial crisis .. Gerry Epstein, a Professor of Economics at the University of Massachusetts at Amherst, and a fellow of INET, has conducted extensive research which highlights the way the Federal Reserve's policies in the aftermath of the crisis, & concludes that Wall Street & wealthy Americans are in fact the biggest winners from policies like quantitative easing, while Main Street Americans have seen little improvement in their economic lives .. 17 minutes

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