In their introduction to the special issue of the Review of Economic Dynamics on "Great Depressions of the 20th Century" (Vol. 5, 2002), Timothy J. Kehoe and Edward C. Prescott argue that in the last few years "great depressions" have hit two rich countries: New Zealand and Switzerland. We...

Over the last few decades, inequality has been decreasing sharply between countries. However, a person’s country of birth still determines more than half the differences in his or her income. This publication puts the spotlight on the catalyst behind inequality. It argues that the...