Inequality, Leverage and Crises

Inequality, Leverage and Crises
Author: Mr.Michael Kumhof
Publisher: International Monetary Fund
Total Pages: 39
Release: 2010-11-01
Genre: Business & Economics
ISBN: 1455210757

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The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financial and real crisis. The paper presents a theoretical model where these features arise endogenously as a result of a shift in bargaining powers over incomes. A financial crisis can reduce leverage if it is very large and not accompanied by a real contraction. But restoration of the lower income group's bargaining power is more effective.


Inequality, Leverage and Crises
Language: en
Pages: 39
Authors: Mr.Michael Kumhof
Categories: Business & Economics
Type: BOOK - Published: 2010-11-01 - Publisher: International Monetary Fund

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The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 bot
Inequality, Leverage and Crises
Language: en
Pages: 48
Authors: Mr.Michael Kumhof
Categories: Business & Economics
Type: BOOK - Published: 2013-12-17 - Publisher: International Monetary Fund

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The paper studies how high household leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 198
The Circular Relationship Between Inequality, Leverage, and Financial Crises
Language: en
Pages: 75
Authors: RĂ©mi Bazillier
Categories:
Type: BOOK - Published: 2014 - Publisher:

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Crisis and Inequality
Language: en
Pages: 326
Authors: Mattias Vermeiren
Categories: Political Science
Type: BOOK - Published: 2021-02-11 - Publisher: John Wiley & Sons

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Spiralling inequality since the 1970s and the global financial crisis of 2008 have been the two most important challenges to democratic capitalism since the Gre
Causes and Consequences of Income Inequality
Language: en
Pages: 39
Authors: Ms.Era Dabla-Norris
Categories: Business & Economics
Type: BOOK - Published: 2015-06-15 - Publisher: International Monetary Fund

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This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely among