As suggested by recent empirical evidence, one of the causes behind the widespread rise of inequality experienced by … wealth inequality. However, the authors also find that this effect is diminished by tight monetary policy and low credit …

We propose a theory of indebted demand, capturing the idea that large debt burdens by households and governments lower … aggregate demand, and thus natural interest rates. At the core of the theory is the simple yet under-appreciated observation … a two-agent overlapping-generations model, we find that recent trends in income inequality and financial liberalization …

question of how inequality affects the value of the multiplier. The proposed formulation is analytically derived from the … Lorenz curve of income by means of Zanardi asymmetry index. Since the relationship between inequality and multiplier is found … to be negative, it can be argued that greater inequality has depressive effects on GDP …

continued to grow. The resulting polarization in earnings has been accompanied by an increase in wealth inequality. This paper … increases wealth inequality. We then analyze the efficacy of alternative fiscal measures in terms of their ability to increase … economic activity, reduce wealth inequality, and improve welfare. A reduction in the tax rate on capital achieves all of these …