Who Gains When Interest Rates Fall?

This paper examines the distributional consequences of declining interest rates across households and economic groups. The authors analyze how lower rates affect wealth, borrowing costs, asset prices, and labor income, showing that the gains from monetary easing are unevenly distributed depending on households’ balance sheets and exposure to financial markets. The study contributes to debates on monetary policy, inequality, and the broader economic effects of prolonged low-interest-rate environments.