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Revisiting global imbalances: A comparative analysis of income and consumption inequality

Li Sheng and Zhaoyong Zhang ()

Economics and Politics, 2022, vol. 34, issue 2, 382-390

Abstract: This article presents a simple model that reveals the reverse relation of the ratio of current account balance to inequality in income and consumption. Consumption smoothing schemes have been aggregated, among which the linchpin is a policy intervention that mitigates the worsening consumption inequality problem. However, in the long run, short‐sighted policies could have a corresponding impact on current accounts.

Date: 2022
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