Saturday, August 30, 2014

Spence On the Results of Inequality

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.

No comments: