Layard, R, Nickell, S and Mayraz, G (2008), ‘The marginal utility of income’, Journal of Public Economics, Vol. 92, pp. 1846-1857. Lipton, D (2014), ‘Fiscal Policy and Income Inequality’, speech at the Peterson Institute for International Economics. Lysenko, T, Glass, B and Six, J-M (2016), ‘QE And Economic Inequality: The U.K. Experience’, Standard & Poors Economic Research. Milanovic, B (2016), Global Inequality: A New Approach for the Age of Globalisation, Harvard University Press. Monnin, P (2017), ‘Monetary Policy, Macroprudential Regulation and Inequality’, Council on Economic Policies Discussion Note. Patinkin, D (1987), ‘Neutrality of Money’, in Eatwell, J, Milgate, M and Newman, P (eds), The New Palgrave Dictionary of Economics, Macmillan Press Ltd. Piketty, T (2014), Capital in the Twenty-First Century, Harvard University Press. Service, O et al (2014), ‘EAST – Four simple ways to apply behavioural insights’, Behavioural Insights Team. Sheffield Political Economy Research Institute (2015), ‘The UK’s ‘annual tax summaries’’, SPERI British Political Economy Brief, No. 16. Stiglitz, J (2013), The Price of Inequality, Penguin. Vermeulen, P (2016), ‘Estimating the top tail of the wealth distribution’, ECB Working Paper, No. 1907. 20  All speeches are available online at www.bankofengland.co.uk/speeches  20  Winkelmann, L and Winkelmann, R (1998), ‘Why Are the Unemployed So Unhappy? Evidence from Panel Data’, Economica, Vol. 65, No. 257, pp. 1-15. World Bank Group (2016), ‘Development Goals in an Era of Demographic Change’, Global Monitoring Report, 2015/2016.

Sources: ONS and Bank calculations  Chart 23: Impact of monetary policy on welfare, across the age distribution  Chart 24: Perceived impact of monetary policy on welfare, across the age distribution  Total income Total wealth Unemployment effect Total  0.05  Net percentage balance of household who think lower interest rates have made them better off 10  0.04  0  Utility  -10 0.03  -20 -30  0.02  -40  0.01  -50 0 -0.01 25 30 35 40 45 50 55 60 65 70 75 80 All 2012-14 age group Sources: ONS and Bank calculations  -60  -70 25-29 35-39 45-49 55-59 65-69 75-79 Age group  All  Sources: NMG Consulting and Bank calculations  27  All speeches are available online at www.bankofengland.co.uk/speeches  27  Table 1 – Regression results [1] Dependant variable Income £ Net wealth (000) ihs(income)  0.0015*** (0.0003) 0.0002*** (0.0000) 0.200*** (0.021)  ihs(net wealth)  [2] [3] [4] Average of happiness and life satisfaction  0.284*** (0.012) 0.094*** (0.003)  0.130*** (0.014) 0.054*** (0.003)  ihs(net financial wealth)  0.081*** (0.015)  0.024*** (0.001) 0.008*** (0.002) 0.009*** (0.002) 0.124*** (0.010)  ihs(pension wealth) ihs(net housing wealth) ihs(physical wealth)  N  N  0.008*** (0.002)  0.121*** (0.010) 0.005** (0.002) 0.003* (0.002) 0.045*** (0.003) -0.002 (0.002) -0.019*** (0.002) -0.435*** (0.051) -0.300*** (0.041) -0.582*** (0.208) -1.048*** (0.135) Y  Y  Y  ihs(unsecured debt)  Additional controls  0.007*** (0.002)  Y  ihs(mortgage debt)  Arrears of 2 months plus  0.047*** (0.015)  -0.473*** (0.055) -0.294*** (0.045) -0.517** (0.226) -1.255*** (0.146)  ihs(deposits)  Arrears of less than 2 months  0.059*** (0.016)  -0.505*** (0.051) -0.345*** (0.041) -0.646*** (0.209) -1.126*** (0.135)  ihs(other gross financial wealth)  Other unemployed person in household  [6] Average of all 4  0.115*** (0.010) 0.005*** (0.002) 0.006*** (0.002) 0.056*** (0.004) -0.001 (0.002) -0.016*** (0.002) -0.466*** (0.056) -0.298*** (0.045) -0.498** (0.226) -1.282*** (0.147)  ihs(gross housing wealth)  Household head unemployed  [5]  Observations 48,545 48,545 48,094 48,200 48,200 R-squared 0.018 0.048 0.112 0.128 0.127 Standard errors in parentheses *** p<0.01, ** p<0.05, * p<0.1 All equations include additional controls for wave, age, education, gender, marital status and economic activity of head of household Effect of being unemployed is relative to being in employment  48,094 0.123  “ihs" refers to inverse hyperbolic sine – this is a similar to a log transformation but can be applied to numbers which are zero or negative.