https://www.frbsf.org/economic-research/files/wp2017-23.pdf
Research from the Federal Reserve Bank of San Francisco shows still more clearly the link between economic inequality and financial-crisis risk. This paper deploys exhaustive research across decades in 17 countries based on statistical correlations of inequality, productivity, credit growth, and crises. Although productivity has a strong impact on crisis risk, a widening income share for the top one percent is the most predictive antecedent to a crash even when controlling for an array of other possible causes, including the asset-price bubbles that gave the Fed so much pause yet again in its latest financial-stability report.
Charlie Cooper
No comments:
Post a Comment