IMF paper on ‘Causes and Consequences of Income Inequality: A Global Perspective’

Causes and Consequences of Income Inequality : A Global Perspective was published by the International Monetary Fund (IMF) in June 2015.

The paper finds that ‘when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive’.