From Denmark: Negative Rates in the Scandinavian Country are Helping the Rich Get Richer Faster

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This is the sort of thing that happens when one tries to keep reality at bay with ultra loose monetary policy.

(From Bloomberg)

Wise men from the land with the world record in subzero rates have weighed in on the debate about the effects of loose monetary policy on income distribution.

According to the latest report from the Danish Economic Council, a fiscal policy watchdog made up of academics commonly known as the “wise men,” years of ultra low rates have benefited the rich more than the poor…

…In other words, Denmark’s poorest have missed out on the gains in asset prices fueled by years of cheap money. The return on Denmark’s benchmark equity index has exceeded 120 percent since rates first went negative in mid-2012.

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