Series: IMF Working Papers
Author(s): Michael Kumhof , Romain Ranciere , and Pablo Winant
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 17 December 2013
Keywords: wealth inequality, debt leverage, wealth in utility, global solution methods, recession, crisis probability, Aggregate Factor Income Distribution, Financial Markets and the Macroeconomy, wealth inutility, global solution methods.,
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 1983-2008 both exhibited a large increase in the income s...