The consequences of rising income
inequality can tempt policymakers down a dangerous path: the use of
debt, sometimes combined with an asset bubble, to sustain consumption.
This arguably occurred in the 1920s, prior to the Great Depression; it
certainly occurred in the US (and Spain and the United Kingdom) in the
decade prior to the 2008 crisis.
Read more at
http://www.project-syndicate.org/commentary/michael-spence-asks-whether-disparities-of-income-and-wealth-help-or-hurt-prospects-for-economic-growth#ltb7vdpduvFMLoWw.99
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