Inequality can worsen recessions – BIS paper

The Bank for International Settlements, Basel
The Bank for International Settlements, Basel
Photo: Ulrich Roth

Income inequality can make recessions significantly deeper, research published by the Bank for International Settlements finds.

Income inequality and the depth of economic downturns, by Emanuel Kohlscheen, Marco Jacopo Lombardi and Egon Zakrajšek, explores data on 91 advanced and emerging economies from 1981 to 2019. The authors distinguish between expansionary and contractionary periods of the business cycle, and between financial crashes and “normal” downturns.

They find evidence that

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: