Banking Sector Crises and Inequality

36 Pages Posted: 9 Aug 2005

See all articles by Patrick Honohan

Patrick Honohan

Independent; Trinity College Dublin - Department of Economics; Peter G. Peterson Institute for International Economics; Centre for Economic Policy Research (CEPR)

Date Written: July 2005

Abstract

An apparent temporary narrowing of income inequality has been observed during several recent banking crises. But it would be a mistake to conclude that such crises don't matter for the poor. For one thing, the correlation is not strong, and the opposite pattern has also been present. Besides, the poor are much less able to absorb a cut in income: safety-net policies are urgent during a downturn even if the gap between rich and poor has temporarily narrowed. More fundamentally, distributional shifts during the crisis itself may be less important than the fact that underlying financial policy and infrastructures conducive to crisis can also be associated with more unequal societies.

Suggested Citation

Honohan, Patrick and Honohan, Patrick, Banking Sector Crises and Inequality (July 2005). World Bank Policy Research Working Paper No. 3659, Available at SSRN: https://ssrn.com/abstract=770926 or http://dx.doi.org/10.2139/ssrn.770926

Patrick Honohan (Contact Author)

Independent ( email )

11 Cowper Gardens
+353 1 4979222 (Phone)

Trinity College Dublin - Department of Economics ( email )

Dublin 2
Ireland

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

Centre for Economic Policy Research (CEPR)

33 Great Sutton St,
Clerkenwell,
London, EC1V 0DX
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
164
Abstract Views
1,363
rank
251,114
PlumX Metrics