[L'impact économique des fortes inégalités : problèmes et solutions]"> [L'impact économique des fortes inégalités : problèmes et solutions]"> [L'impact économique ">
Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/hal/spmain/hal-01053897.html
   My bibliography  Save this paper

High inequality and its impact on the economy
[L'impact économique des fortes inégalités : problèmes et solutions]

Author

Listed:
  • Francesco Saraceno

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract
This brief argues that increasing inequality had deep macroeconomic consequences as it contributed, in combination with credit institutions, to either stagnating aggregate demand or to increasing public and private debt. Inequality may also contribute, along with supply factors, to the drifting towards secular stagnation. Income distribution would then be one of the major determinants of the increasing global imbalances that made the world economy extremely fragile at the outset of the crisis. The crisis in turn exacerbated inequality, especially in peripheral Eurozone countries. The path towards sustainable future growth passes therefore for a reduction of inequality that, in particular in European countries, needs to be coordinated. Finally, if rent-seeking plays an important role in the past increase of inequality, then active fiscal policies and regulation need to be part of the effort to curb inequality.

Suggested Citation

  • Francesco Saraceno, 2014. "High inequality and its impact on the economy [L'impact économique des fortes inégalités : problèmes et solutions]," SciencePo Working papers Main hal-01053897, HAL.
    • Handle: RePEc:hal:spmain:hal-01053897
    DOI: 10.3917/reof.134.0187
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-01053897v2
    as

    Download full text from publisher

    File URL: https://hal-sciencespo.archives-ouvertes.fr/hal-01053897v2/document
    Download Restriction: no
    File URL: https://libkey.io/10.3917/reof.134.0187?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:hal:pseose:halshs-00879814 is not listed on IDEAS
    2. Cynamon Barry Z. & Fazzari Steven M., 2008. "Household Debt in the Consumer Age: Source of Growth--Risk of Collapse," Capitalism and Society, De Gruyter, vol. 3(2), pages 1-32, October.
    3. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    4. Thomas Piketty, 2013. "Le capital au XXIe siècle," PSE-Ecole d'économie de Paris (Postprint) halshs-00979232, HAL.
    5. Fitoussi Jean Paul & Saraceno Francesco, 2010. "Europe: How Deep Is a Crisis? Policy Responses and Structural Factors Behind Diverging Performances," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-19, January.
    6. Thomas Piketty & Emmanuel Saez, 2013. "Top Incomes and the Great Recession: Recent Evolutions and Policy Implications," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(3), pages 456-478, August.
    7. Ian Dew-Becker & Robert J. Gordon, 2005. "Where Did Productivity Growth Go? Inflation Dynamics and the Distribution of Income," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 36(2), pages 67-150.
    8. Jérôme Creel & Francesco Saraceno, 2010. "The Crisis, Automatic Stabilisation, and the Stability Pact," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 48(1), pages 75-103, Junio.
    9. Matthieu Charpe & Peter Flaschel & Christian Proano & Willi Semmler, 2009. "Overconsumption, credit rationing and bailout monetary policy: A Minskyan perspective," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 6(2), pages 247-270.
    10. Jean-Paul Fitoussi & Francesco Saraceno, 2010. "Europe: How Deep Is a Crisis? Policy Responses and Structural Factors Behind Diverging Performances," SciencePo Working papers hal-03416004, HAL.
    11. Galbraith, James K., 2012. "Inequality and Instability: A Study of the World Economy Just Before the Great Crisis," OUP Catalogue, Oxford University Press, number 9780199855650.
    12. Raghuram G. Rajan, 2010. "Fault Lines: How Hidden Fractures Still Threaten the World Economy," Economics Books, Princeton University Press, edition 1, number 9111.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guillaume Allegre & Xavier Timbeau, 2014. "Welcome to Nouillorc le capital-logement ne contribue-t-il vraiment pas aux inégalités ?," Post-Print hal-03460427, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean-Paul Fitoussi & Francesco Saraceno, 2014. "Drivers of inequality: Past and present challenges for Europe," SciencePo Working papers Main hal-03596318, HAL.
    2. Francesco Saraceno, 2014. "High inequality and its impact on the economy [L'impact économique des fortes inégalités : problèmes et solutions]," Post-Print hal-01053897, HAL.
    3. repec:hal:spmain:info:hdl:2441/2q6hk56t1k8o6qje4l40fj5s9t is not listed on IDEAS
    4. Xavier Timbeau & Ofce Observatoire Français Des Conjonctures Économiques, 2014. "From austerity to stagnation how to avoid the deflation trap," Post-Print hal-03603164, HAL.
    5. Francesco Saraceno, 2014. "L'impact économique des fortes inégalités : problèmes et solutions," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 187-200.
    6. repec:spo:wpmain:info:hdl:2441/2q6hk56t1k8o6qje4l40fj5s9t is not listed on IDEAS
    7. Jean-Paul Fitoussi & Francesco Saraceno, 2014. "Drivers of inequality: Past and present challenges for Europe," SciencePo Working papers hal-03596318, HAL.
    8. Francesco Saraceno, 2014. "L'impact economique des fortes inégalités Problèmes et solutions," SciencePo Working papers Main hal-00991185, HAL.
    9. repec:spo:wpmain:info:hdl:2441/gmkj8k1vf8tpbdue5q2emsepp is not listed on IDEAS
    10. repec:hal:spmain:info:hdl:2441/gmkj8k1vf8tpbdue5q2emsepp is not listed on IDEAS
    11. repec:spo:wpmain:info:hdl:2441/12hs8nng048qsb118kcsacukij is not listed on IDEAS
    12. repec:hal:spmain:info:hdl:2441/12hs8nng048qsb118kcsacukij is not listed on IDEAS
    13. repec:hal:spmain:info:hdl:2441/c5gs2rgi93abt1s4jkeabou1 is not listed on IDEAS
    14. repec:spo:wpmain:info:hdl:2441/c5gs2rgi93abt1s4jkeabou1 is not listed on IDEAS
    15. Cardaci, Alberto & Saraceno, Francesco, 2016. "Inequality, Financialisation and Credit Booms - a Model of Two Crises," LEAP Working Papers 2016/2, Luiss Institute for European Analysis and Policy.
    16. Till Treeck, 2014. "Did Inequality Cause The U.S. Financial Crisis?," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 421-448, July.
    17. Rémi Bazillier & Jérôme Hericourt, 2017. "The Circular Relationship Between Inequality, Leverage, And Financial Crises," Journal of Economic Surveys, Wiley Blackwell, vol. 31(2), pages 463-496, April.
    18. Alberto CARDACI & Francesco SARACENO, 2015. "Inequality, Financialisation and Economic Crises: An Agent-Based Macro Model," Departmental Working Papers 2015-21, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    19. Jean-Paul Fitoussi & Francesco Saraceno, 2010. "Inequality and macroeconomic performance," Working Papers hal-01069429, HAL.
    20. Marwil J. Dávila-Fernández & Lionello F. Punzo, 2018. "Some New Insights on Financialisation and Income Inequality," Department of Economics University of Siena 792, Department of Economics, University of Siena.
    21. repec:spo:wpmain:info:hdl:2441/7qe4u05nfo9gcaran6h19ej29p is not listed on IDEAS
    22. Botta, Alberto & Caverzasi, Eugenio & Russo, Alberto & Gallegati, Mauro & Stiglitz, Joseph E., 2021. "Inequality and finance in a rent economy," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 998-1029.
    23. Rémi Bazillier & Jérôme Héricourt & Samuel Ligonnière, 2017. "Structure of Income Inequality and Household Leverage: Theory and Cross-Country Evidence," Working Papers 2017-01, CEPII research center.
    24. Bazillier, Rémi & Héricourt, Jérôme & Ligonnière, Samuel, 2021. "Structure of income inequality and household leverage: Cross-country causal evidence," European Economic Review, Elsevier, vol. 132(C).
    25. Alberto Cardaci & Francesco Saraceno, 2015. "Inequality, Financialisation and economic crises : an agent-based model," SciencePo Working papers Main hal-03470036, HAL.
    26. Alberto Cardaci & Francesco Saraceno, 2015. "Inequality, Financialisation and Economic Crisis : an Agent-Based Model," Documents de Travail de l'OFCE 2015-27, Observatoire Francais des Conjonctures Economiques (OFCE).
    27. repec:hal:spmain:info:hdl:2441/7qe4u05nfo9gcaran6h19ej29p is not listed on IDEAS
    28. Alberto Cardaci & Francesco Saraceno, 2015. "Inequality, Financialisation and economic crises : an agent-based model," Working Papers hal-03470036, HAL.
    29. Christian A Belabed & Thomas Theobald & Till van Treeck, 2018. "Income distribution and current account imbalances [Notes on capacity utilisation, distribution and accumulation]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(1), pages 47-94.
    30. Philip Arestis & Ana Rosa Gonzalez-Martinez, 2016. "Income Inequality: Implications and Relevant Economic Policies," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(1), pages 1-24, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:spmain:hal-01053897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Contact - Sciences Po Departement of Economics (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.