Panoeconomicus 2016 Volume 63, Issue 1, Pages: 1-24
https://doi.org/10.2298/PAN1601001A
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Income inequality: Implications and relevant economic policies
Arestis Philip (University of Cambridge, UK)
Gonzalez-Martinez Ana Rosa (Cambridge Econometrics, UK)
The aim of this contribution is to discuss closely the implications of income
inequality and the economic policies to tackle it, especially so in view of
inequality being one of the main causes of the 2007/2008 international
financial crisis and the “great recession” that subsequently emerged. Wealth
inequality is also important in this respect, but the focus is on income
inequality. Ever since the financial crisis and the subsequent “great
recession”, inequality of income, and wealth, has increased and the demand
for economic policy initiatives to produce a more equal distribution of
income and wealth has become more urgent. Such reduction would help to
increase the level of economic activity as has been demonstrated again more
recently. A number of economic policy initiatives for this purpose will be
the focus of this contribution.
Keywords: income inequality, economic activity, redistribution of income, economic policies