Inequality and financial instability: Structural limits to inclusive growth

The illusion that unregulated financial markets could combine limitless prosperity with durable stability disappeared with the 2008-2009 global financial crisis. In addition, it is now recognized that a prolonged period of rising inequality preceded the financial crisis, and the rise was particularly marked in countries at the epicentre of that crisis. Some observers see a clear and direct association between huge inequalities in income distribution and financial crises (Milanovic, 2010), while others consider the search for a “one-note narrative” too simplistic (Galbraith, 2014).

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities

Partnerships for the Goals