Differential Impact of Quantitative Easing on Income, Consumption and Wealth of the Younger and Older Generations

ABSTRACT This paper examines the differential effects of quantitative easing on the young, middle‐aged and pensioners by comparing the periods before and after quantitative easing interventions in the UK. Quantitative easing may have boosted employment opportunities, as suggested by a few studies, but this paper finds that quantitative easing did not increase income and consumption for the working age groups. However, average income and consumption of the pensioners increase for the same period. The income gain may be partly due to the triple lock on pension. Overall, quantitative easing has a pronounced positive impact on wealth across all generations.