Income Inequality Concerns Central Bankers

June 9th, 2014 by Rick Drain

One of the big themes in political and economic discussions since the recovery started is the enormous growth in income inequality in the USA and most of  the rest of the developed world.

If it were just a discussion of “fairness”, we could argue about it forever, with no real need to reach a conclusion.

Since it’s a matter of continued good health of the economic system, though, we need focused attention and serious policy discussion.

From the  Bloomberg.com post “Central Banks Channel Piketty Inequality Concerns, Nowotny Says“:

“Monetary policy makers, including also the IMF, are paying more attention to questions of inequality, because we’ve seen that distribution can have effects that are relevant for monetary policy,” Nowotny said. “For instance, it was a key reason for the U.S. financial crisis that policy makers tried to solve the housing problem for lower income brackets not by social housing but by very cheap credit.”

You can read the entire article (short and sweet) by clicking here:

Central Banks Channel Piketty Inequality Concerns, Nowotny Says