Finance and Inequality
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Summary:
The study examines empirical relationships between income inequality and three features of finance: depth (financial sector size relative to the economy), inclusion (access to and use of financial services by individuals and firms), and stability (absence of financial distress). Using new data covering a wide range of countries, the analysis finds that the financial sector can play a role in reducing inequality, complementing redistributive fiscal policy. By expanding the provision of financial services to low-income households and small businesses, it can serve as a powerful lever in helping create a more inclusive society but—if not well managed—it can amplify inequalities.
Series:
Staff Discussion Notes No. 2020/001
Subject:
Economic sectors Financial inclusion Financial markets Financial sector Financial services Income distribution Income inequality National accounts
English
Publication Date:
January 17, 2020
ISBN/ISSN:
9781513526546/2617-6750
Stock No:
SDNEA2020001
Pages:
50
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