Analysis of the Effects of Asset Price Changes on Economic Inequality and External Economic Variables

Deok Ryong Yoon (dryoon@kiep.go.kr), Dong-Eun Rhee and Jinhee Lee (jinhee@kiep.go.kr)
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Deok Ryong Yoon: KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP), Postal: [30147] , Building C, Sejong National Research Complex, , 370, Sicheong-daero, , Sejong-si, Korea, https://www.kiep.go.kr/eng/
Jinhee Lee: KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP), Postal: [30147] , Building C, Sejong National Research Complex, , 370, Sicheong-daero, , Sejong-si, Korea, https://www.kiep.go.kr/eng/

No 20-37, World Economy Brief from Korea Institute for International Economic Policy

Abstract: The world economy has experienced rapid polarization and concentration of wealth that has progressed rapidly over the past 30 years. Wealth inequality has caused a variety of socio-economic changes, and economic inequality remains unresolved. This study presented implications for fiscal and external policies by examining the wealth inequality faced by the global economy from various angles. First, we investigated the effect of wealth inequality on growth and consumption in Korea. Based on the results, the authors explored the direction for the redistribution policy and the consumption stabilization policy for the low-income class. Next, to alleviate income inequality, the determinants of income inequality were examined, focusing on the progressive fiscal policy and asset prices. Lastly, the impact of income inequality on the external economy was empirically analyzed to derive implications for future current account balances.

Keywords: asset price change; economic inequality; external economic variables; growth; consumption; future current account (search for similar items in EconPapers)
Pages: 4 pages
Date: 2020-12-11
New Economics Papers: this item is included in nep-cwa and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:ris:kiepwe:2020_037

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