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BOOK SUMMARY :

International monetary fund research department redistribution inequality and growth prepared by jonathan d ostry andrew berg charalambos g tsangarides1 authorized for distribution by olivier blanchardthe fund has recognized in recent years that one cannot separate issues of economic growth and stability on one hand and equality on the other indeed there is a strong case for considering inequality and an inability to sustain economic growth as two sides of the same coin central to the funds the relationship between aggregate output and the distribution of income is an important topic in macroeconomics galor 2011 the role that income inequality plays in economic growth has also received quite a bit of attention in policy circles and the press recently for instance the world bank the relationship between aggregate output and income inequality is central in macroeconomics this column argues that greater income inequality raises the economic growth of poor countries and decreases the growth of high and middle income countries human capital accumulation is an important channel through which income inequality affects growththe fund has recognized in recent years that one cannot separate issues of economic growth and stability on one hand and equality on the other indeed there is a strong case for considering inequality and an inability to sustain economic growth as two sides of the same coin central to the funds mandate is providing advice that will enable members economies to grow on a sustained basis

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