Fed Board, Report: Winners and Losers from Recent Asset Price Changes

“The methodology in this note shows that over the period including the recent rise in inflation and subsequent monetary policy tightening, asset prices have moved in such a way as to, on average, benefit middle-aged people at the expense of retirees. While we think these results are useful to understand the heterogeneous effects of monetary policy, we note that the welfare effects we measure here are only those that arise from the redistribution of welfare through asset price changes. This measure does not capture the welfare effects of other large changes that have occurred in this period, such as in the labor market and in fiscal policy.”