How should I understand the underlined?
Thanks in advance.
In another paper, Markus Brunnermeier and Yuliy Sannikov of Princeton University provided
theoretical justification for this approach. Monetary easing usually works by encouraging
businesses and households to move future consumption and investment forward to today. But it
also has “redistributive” effects. For example, low short-term interest rates redistribute income
from depositors to banks, which allows them to rebuild capital and encourages them to lend
more. Similarly, purchases of ten-year government bonds enrich some investors while hurting
others, such as pension funds, that depend on bond income to meet longer-dated liabilities. By
tailoring their instruments to sectors most in need of support, central banks can get more bang
for their buck.