Foreword, by Joseph E. Stiglitz
Preface
1. Introduction
2. Inequality: Measures and Drivers
3. Inequality and Sustained Growth
4. Structural Policies and Inequality
5. Financial Globalization and Inequality
6. Austerity and Inequality
7. Central Banks and Inequality
8. Technology, Robots, and Inequality
9. Remedies for Inequality—Redistribution
10. Conclusions
Data Appendix
Technical Appendix
Glossary
References
Index
Jonathan D. Ostry is deputy director of the research department at
the International Monetary Fund, where his work on financial
globalization and inequality has been influential in bringing about
a shift in the IMF’s stance on these issues. His many books include
Taming the Tide of Capital Flows (2017). His work on inequality and
unsustainable growth has been cited by, among others, Barack
Obama.
Prakash Loungani is assistant director in the IMF’s Independent
Evaluation Office. Known for his work on the difficulty of
forecasting recessions, he blogs as The Unassuming Economist.
Andrew Berg is deputy director of the IMF’s Institute for Capacity
Development. He previously served at the U.S. Treasury, including
as deputy assistant secretary for East Asia and Latin America in
2000–2001 and chief economist of the Mexican Task Force in
1995–1996.
This book shows that, far from being either necessary or good for
growth, inequality leads to weaker economic performance. Moreover,
increases in inequality have been a choice, not an unexpected
outcome. The extent of inequality depends very much on the policies
governments chose. These conclusions come from careful research
conducted over several years. This book’s message is simple:
societies are free to choose policies that will deliver more
inclusive growth.
*From the foreword by Joseph Stiglitz, Nobel Laureate in
Economics*
The IMF has been an unlikely accompaniment to the chorus of voices
speaking out against increasing inequality, influenced primarily by
the work of these authors. Here they explain why concerns about
income distribution should be more central to policy making, and
why the world will be better off for it. Backed by sensible
empirical work, their arguments deserve to be read and discussed
widely.
*Raghuram G. Rajan, University of Chicago Booth School of
Business*
Ostry, Loungani, and Berg have done some of the best empirical
research on globalization, inequality, and economic growth. This
book not only brings the work together, but also sets out a rich
policy agenda on inclusive growth. Confronting Inequality should be
on the shelf of everyone who wants to understand the future of our
economies.
*Dani Rodrik, Harvard University*
We must move from assessing the effects of economic policies only
on growth to assessing their effect on both growth and inequality.
Some growth policies also decrease inequality, others increase it.
Understanding the effects of specific policies, be it structural
reforms or macroeconomic policies, is of the essence, and this book
represents an important start at addressing the issue.
*Olivier Blanchard, senior fellow, Peterson Institute for
International Economics, and former chief economist, International
Monetary Fund*
The book provides a rigorous and pragmatic argument for why income
inequality is a threat to sustained economic growth and what
policies should be used to address it. Coming from the top IMF
economists, this new approach may herald a major change in global
policies such that attention is paid to both growth and
equality.
*Branko Milanović, The Graduate Center, CUNY*
Building on years of research conducted by the authors at the
International Monetary Fund, Ostry, Loungani, and Berg tell a
compelling story—in a pithy, accessible way—about how inequality
hurts economic growth and stability and how to design policies to
deliver a more inclusive growth.
*Heather Boushey, executive director and chief economist,
Washington Center for Equitable Growth*
Confronting Inequality is a valuable primer on one of the central
issues of the present day. Ostry, Loungani, and Berg make a
powerful argument that inequality has economic, social, and
political effects that slow economic growth—and they suggest a menu
of sensible policies to make the world a better, fairer, and more
prosperous place. A cogent and concise summary of what we know
about inequality and about how to reduce it.
*Jeffry Frieden, Harvard University*
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