The Income-Inequality Impact of Post-Crisis Policy
By Karen Shaw Petrou
How could it be that the $4.5 trillion on the Federal Reserve’s balance sheet, a real short-term interest rate still beneath 0%, and an array of tough post-crisis regulatory reforms have done so little to make many Americans better off and have even made them angrier about income inequality? Although the Federal Reserve has acknowledged the need to study this conundrum, continued economic malaise combined with profound political discontent make income inequality the most critical question facing policymakers in 2017. It’s a question that cannot just be studied but must be answered through action.