Inequality, leverage and crises
"The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financia...
| Main Authors: | , |
|---|---|
| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Washington, DC
2010
IMF |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19183100124919013829-inequality,-leverage-and-crise.htm |
| _version_ | 1771659892745043969 |
|---|---|
| author | Kumhof, Michael Rancière, Romain |
| author_facet | Kumhof, Michael Rancière, Romain |
| collection | Library items |
| description | "The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financial and real crisis. The paper presents a theoretical model where these features arise endogenously as a result of a shift in bargaining powers over incomes. A financial crisis can reduce leverage if it is very large and not accompanied by a real contraction. But restoration of the lower income group's bargaining power is more effective." |
| format | TEXT |
| geographic | USA |
| id | 19183100124919013829_3784fe1fc60c4cb6b8bd388a658cac90 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19183100124919013829_3784fe1fc60c4cb6b8bd388a658cac90 |
| is_hierarchy_title | Inequality, leverage and crises |
| language | English |
| physical | 37 p. Digital |
| publishDate | 2010 |
| publisher | Washington, DC IMF |
| spellingShingle | Kumhof, Michael Rancière, Romain economic recession income distribution social inequality Inequality, leverage and crises |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=115295793347 |
| title | Inequality, leverage and crises |
| topic | economic recession income distribution social inequality |
| url | https://www.labourline.org/KENTIKA-19183100124919013829-inequality,-leverage-and-crise.htm |