Rising inequality affects the composition of asset demands as well as aggregate demand. The poor have few financial assets and their portfolio is skewed towards fixed-income assets. The rich, by contrast, hold a large proportion of their wealth in stocks. Thus, an increase in inequality tends to...

I study how the distribution of wealth influences the governmentś response to a banking crisis and the fragility of the financial system. When the wealth distribution is unequal, the governmentś bailout policy during a systemic crisis will be shaped in part by distributional concerns. In...

I study how the distribution of wealth influences the government's response to a banking crisis and the fragility of the financial system. When the wealth distribution is unequal, the government's bailout policy during a systemic crisis will be shaped in part by distributional concerns. In...

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...

Using a panel dataset of 26 advanced economies over the five decades preceding the Covid-19 crisis, we show that inequality rises following recessions and that rapidcredit growth in the run up to a downturn exacerbates that effect. A one standard deviation credit boom leads to a 40%...

Using a panel dataset of 26 advanced economies over the five decades preceding the Covid crisis, we show that inequality rises following recessions and that rapid credit growth in the run up to a downturn exacerbates that effect. A one standard deviation credit boom leads to a 40% amplification...