Hungary’s Monetary Policy Mistakes
One of the most controversial topics in Europe right now is … Hungary’s national bank? Yes, we live in strange times. The Magyar Nemzeti Bank has become a focal point in the fight between the center-right government of Hungarian Prime Minister Viktor Orban and the European Union, which says the government has been undermining the […]
Income Inequality and Current Account Imbalances
Kumhof, Michael, Lebarz, Claire, Ranciere, Romain, Richter, Alexander , & Throckmorton, Nathaniel. This paper studies the empirical and theoretical link between increases in income inequality and increases in current account deficits. Cross-sectional econometric evidence shows that higher top income shares, and also financial liberalization, which is a common policy response to increases in income inequality, […]