Our results show that the Fed’s policy helps preserve the value of the wealth of the top one percent. Without intervention by the Fed, a 6 percent acceleration of inflation would erode their wealth by around 30 percent in real terms after three years—assuming the inflation rate does not continue to rise. But when the Fed intervenes with an aggressive tightening as noted above, the one percent’s wealth only declines about 16 percent after three years. That is a 14 percent net gain in real terms. Our estimates indicate the top 10 percent would experience some net benefit as well from Fed intervention, similarly protecting the real value of their wealth, but the magnitude of the effect is much smaller.
No comments:
Post a Comment