The goal of this presentation is to show that although non-standard monetary policies conducted by major central banks can be quite efficient in stabilizing post-crisis economies, there are side effects. One of the most important side effects of super-expansionary monetary policy is the creation of an economic environment that favors the financial sector and capital owners over the working class, which leads to higher income inequalities. A low central bank interest rate does not mean that every economic unit has access to cheap capital. Only a few select players enjoy ultra-low capital costs, namely, financial institutions and strong corporations. The same can be said about state borrowing costs: only a few governments can borrow cheaply, while others must contend with the power of financial markets, which increases the income gap between societies.
