INCREASING INEQUALITY REDUCES LONG-TERM GROWTH

The consequences of increasing economic inequality for the development of the economy have been the subject of considerable controversy for some time now. Based on a macroeconomic structural model of the German economy the authors of the present publication clearly establish that increasing income inequality has substantially curtailed economic growth in recent years. Higher and more stable economic growth in Germany is out of the question unless economic inequality is reduced.

 

German economic analysis using a macroeconomic structural model

H. ALBIG, M. CLEMENS, F. FICHTNER, S. GEBAUER, S. JUNKER, K. KHOLODILIN

ISBN: 978-3-95861-784-1

© 2017 Friedrich-Ebert-Stiftung

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