Chart of the WeekHow the Rich Get Richer

2020-11-30T10:00:07-05:00November 30, 2020|

By Davide Malacrino

Wealth begets wealth. This simple concept of privilege has added to growing discontent with inequality that has escalated under the shadow of the COVID-19 pandemic.

A paper co-authored this year by economists from the IMF and other institutions confirms that wealthier people are more likely to earn higher returns on their investments. It also shows that the children of wealthy people, while likely to inherit that wealth, aren’t necessarily going to make the same high returns on investments.

Detailed data on wealth are extremely rare, but 12-years of tax records (2004-2015) from Norway have opened a […]

Game-Changers and Whistle-Blowers: Taxing Wealth

2019-03-15T10:39:51-04:00February 13, 2018|

By James Brumby and Michael Keen

February 13, 2018

Versions in عربي (Arabic), 中文 (Chinese), Español (Spanish),  Français (French), 日本語 (Japanese), Русский (Russian)

New Delhi, India: there are now very few effective explicit wealth taxes in either developing or advanced economies (photo: Jens Kalaene/Corbis).

High and rising income inequality is a serious concern in many countries, as highlighted in the IMF’s recent Fiscal Monitor. Wealth, however, […]

Top Ten Charts of the Week: 2017

2019-03-14T16:08:31-04:00January 3, 2018|

By IMFBlog

January 3, 2018

The top 10 charts of the week of 2017 help illuminate the uncharted waters ahead for the global economy  (photo: Kotka, Finland-Newspix24/SipaUS/Newscom).

In the Spring of 2017, we began our Chart of the Week feature on the blog: snapshots in time and over time of how economies work, to help illuminate the uncharted waters ahead for the global economy.

Here are the top ten Charts […]

Managing the revenue from natural resources—what’s a Finance Minister to do?

2017-04-14T01:59:33-04:00June 9, 2014|

By Sanjeev Gupta and Enrique Flores

(Versions in Español)

The Finance Minister answers her mobile. On the line is the Minister of Energy, who informs her that the country has struck oil and that he expects revenues from its sale to start flowing into the budget in the coming four years. While excited by the prospects of higher revenues—indeed the average resource-rich country gets more than 15 percent of GDP in resource revenues—she starts to ponder how to use these revenues for her country’s development. She is aware that only […]

United States: How Inequality Affects Saving Behavior

2017-04-15T14:03:39-04:00September 13, 2012|

Following the crisis, sharp losses in the values of houses and financial assets, as well as difficulties in obtaining new credit, forced American families to save more and rebuild their wealth. The ensuing rise in the saving rate, which stood at 4 percent in the second quarter of 2012, has been an important reason why the recovery from the 2008–09 recession has been sluggish. Therefore, our study looked at which types of households drove the aggregate saving rate down before the crisis and those that drove it up afterwards, so as to improve our ability to assess the potential for future U.S. growth.

Can Policymakers Stem Rising Income Inequality?

2017-04-15T14:04:59-04:00June 28, 2012|

The issue of rising income inequality is now at the forefront of public debate. There is growing concern as to the economic and social consequences of the steady, and often sharp, increase in the share of income captured by higher income groups. While much of the discussion focuses on the factors driving the rise in inequality—including globalization, labor market reforms, and technological changes that favor higher-skilled workers—a more pressing issue is what can be done about it.
Go to Top