  This paper explores whether unconventional monetary policy operations have
redistributive effects on household wealth. Drawing on household balance sheet
data from the Wealth and Asset Survey, we construct monthly time series
indicators on the distribution of different asset types held by British
households for the period that the monetary policy switched as the policy rate
reached the zero lower bound (2006-2016). Using this series, we estimate the
response of wealth inequalities on monetary policy, taking into account the
effect of unconventional policies conducted by the Bank of England in response
to the Global Financial Crisis. Our evidence reveals that unconventional
monetary policy shocks have significant long-lasting effects on wealth
inequality: an expansionary monetary policy in the form of asset purchases
raises wealth inequality across households, as measured by their Gini
coefficients of net wealth, housing wealth, and financial wealth. The evidence
of our analysis helps to raise awareness of central bankers about the
redistributive effects of their monetary policy decisions.
