abstract: 'Unconventional monetary policy (UMP) influences inequality through two

  channels that work in opposite directions - a labour market channel

  (more employment, higher wages) and a financial market channel (higher

  asset prices). In an earlier paper, covering UMP through 2014, we found

  that UMP in Japan had contributed to greater income inequality through

  its effects on asset prices. With a longer time period, a richer dataset

  including labour market data, and a structural vector autoregression

  (SVAR) we confirm that these results continue to hold, and investigate

  why UMP''s impact on inequality in Japan differs from some other

  countries. We argue that Japanese structural issues may mute the labour

  market channel, especially: (i) labour market rigidity; and (ii) the

  large share of the population that is older than 65 years old or

  retired. The older cohort''s capital gains and dividends are re-saved in

  other financial assets, instead of being consumed or used for starting

  businesses. At the same time, wages have not increased despite the

  severe labour shortage, due to the frictions in Japan''s labour market.

  We conclude that these factors may make the inequality created by UMP in

  Japan unique by international comparison.'
affiliation: 'Saiki, A (Corresponding Author), Nihon Univ, Coll Econ, Tokyo, Japan.

  Saiki, Ayako, Nihon Univ, Coll Econ, Tokyo, Japan.

  Frost, Jon, Bank Int Settlements BIS, Basel, Switzerland.

  Frost, Jon, Nederlandsche Bank, Amsterdam, Netherlands.

  Frost, Jon, Cambridge Ctr Alternat Finance, Cambridge, England.'
author: Saiki, Ayako and Frost, Jon
author-email: ayako@brandeis.edu
author_list:
- family: Saiki
  given: Ayako
- family: Frost
  given: Jon
da: '2023-09-28'
doi: 10.1080/00036846.2020.1745748
earlyaccessdate: JUL 2020
eissn: 1466-4283
files: []
issn: 0003-6846
journal: APPLIED ECONOMICS
keywords: 'Central banks; monetary policy; personal income; income distribution;

  Japan'
language: English
month: SEP 19
number: '44'
number-of-cited-references: '40'
pages: 4809-4821
papis_id: d71e1a371b44726ae2d5786673fdcbea
ref: Saiki2020unconventionalmoneta
researcherid-numbers: Saiki, Ayako/GQQ-0202-2022
times-cited: '2'
title: 'Unconventional monetary policy and inequality: is Japan unique?'
type: article
unique-id: WOS:000547673100001
usage-count-last-180-days: '0'
usage-count-since-2013: '11'
volume: '52'
web-of-science-categories: Economics
year: '2020'