Abstract
Concern about inequality, particularly inequality of income and wealth, has become prominent
in public discourse around the world. This article first discusses issues of measurement and goes
on to ask why we should care, emphasizing fairness and the market distortions and negative externalities
found in unequal societies. It documents that the decline in global inequality in recent decades
has been due to falling inequality between, rather than within, countries. The popular picture of rising
inequality in OECD countries is more varied and complex than often perceived. Its drivers include
aspects of globalization and of technological change as well as changes in the distribution of market
power, in financial markets, public policy, and monetary policy. There are two over-arching questions
about how governments can address inequality. The first is what should be tackled at the international
level and what should be the preserve of national policy. The second is what should be the balance
between pre- and post-market interventions. Both have a role but generally the balance has been too
skewed towards the latter.
Original language | English |
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Pages (from-to) | 351-367 |
Journal | Oxford Review of Economic Policy |
Volume | 35 |
Issue number | 3 |
DOIs | |
Publication status | Published - 2019 |