## IMF Fiscal Monitor: Tackling Inequality, October 2017 _Fiscal Monitor, October 2017_ ## Source details **Canonical URL:** [IMF Fiscal Monitor: Tackling Inequality, October 2017](https://www.imf.org/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017) ## Other formats - [Markdown version](/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017/index.md) - [Structured JSON version](/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017/index.json) - [Bundle manifest](/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017/bundle-manifest.json) ## Bibliographic details - Published: October 11, 2017 --- ### Key findings on inequality trends - At the global level, inequality has declined substantially over the past three decades. - Within national boundaries the picture is mixed: some countries have experienced a reduction in inequality while others, particularly advanced economies, have seen a significant increase. - Rising inequality in some countries has contributed to growing public backlash against globalization. - Excessive levels of inequality can erode social cohesion, lead to political polarization, and ultimately lower economic growth. - Whether inequality is excessive depends on country-specific factors, including the growth context in which inequality arises, along with societal preferences. ### Fiscal policy role and focus areas - The Fiscal Monitor examines how fiscal policy can help governments address high levels of inequality while minimizing potential trade-offs between efficiency and equity. - The report concentrates on three salient policy debates: - Progressivity of tax rates at the top of the income distribution. - The introduction of a universal basic income. - The role of public spending on education and health to equalize opportunities and outcomes. ### Analytical approach and tools - The analysis relies on: - Existing theoretical and empirical literature. - IMF work on inequality and fiscal policy. - Country experiences. - New analytical work, including various static microsimulation analyses based on household survey data. - Simulations using a dynamic general equilibrium model, calibrated to country-specific data and behavioral parameters, illustrate the potential impact of alternative budget-neutral tax and transfer measures on income inequality and economic growth. ### Themes addressed in the report - Documentation of recent trends in income inequality, including inequality both between and within countries. - Examination of the redistributive role of fiscal policies over recent decades and emphasis on the importance of policy design to minimize efficiency costs. - Focused analysis of key components of fiscal redistribution: progressivity of income taxation, universal basic income, and public spending policies for achieving more equitable education and health outcomes. ### Empirical and model-based outputs highlighted - Static microsimulation analyses based on household survey data to assess distributional impacts. - Dynamic general equilibrium model simulations to assess macroeconomic and distributional consequences of budget-neutral reforms. - Annexes and figures provide detailed empirical measures and decompositions (for example, Global Income Inequality: Gini Coefficient, 1988–2015; Decomposition of Global Income Inequality, 1988–2013; and many country- and theme-specific figures and tables). *IMF Fiscal Monitor: Tackling Inequality, October 2017* --- ## Content in this bundle - **fiscalmonitordatabaseoct2017 — Dataset overview** - [fiscalmonitordatabaseoct2017 — Dataset overview (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/data/fiscalmonitordatabaseoct2017.xlsx.md){rel="alternate" type="text/markdown"} - [fiscalmonitordatabaseoct2017 — Dataset overview (XLSX)](/-/media/files/publications/fiscal-monitor/2017/october/data/fiscalmonitordatabaseoct2017.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"} - **9781484317419.pdf** - [9781484317419.pdf (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fm1702.pdf.md){rel="alternate" type="text/markdown"} - [9781484317419.pdf (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fm1702.pdf){rel="external" type="application/pdf"} - **Assumptions and Conventions -- Tackling Inequality; Fiscal Monitor; October 2017** - [Assumptions and Conventions -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmassumconv.pdf.md){rel="alternate" type="text/markdown"} - [Assumptions and Conventions -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmassumconv.pdf){rel="external" type="application/pdf"} - **IMF Executive Board Discussion of the Outlook -- Tackling Inequality; Fiscal Monitor; October 2017** - [IMF Executive Board Discussion of the Outlook -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmboardsum.pdf.md){rel="alternate" type="text/markdown"} - [IMF Executive Board Discussion of the Outlook -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmboardsum.pdf){rel="external" type="application/pdf"} - **Chapter 1. Tackling Inequality -- Tackling Inequality; Fiscal Monitor; October 2017** - [Chapter 1. Tackling Inequality -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmc1.pdf.md){rel="alternate" type="text/markdown"} - [Chapter 1. Tackling Inequality -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmc1.pdf){rel="external" type="application/pdf"} - **Country Abbreviations -- Tackling Inequality; Fiscal Monitor; October 2017** - [Country Abbreviations -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmcountryabbrev.pdf.md){rel="alternate" type="text/markdown"} - [Country Abbreviations -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmcountryabbrev.pdf){rel="external" type="application/pdf"} - **Executive Summary -- Tackling Inequality; Fiscal Monitor; October 2017** - [Executive Summary -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmexs.pdf.md){rel="alternate" type="text/markdown"} - [Executive Summary -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmexs.pdf){rel="external" type="application/pdf"} - **Glossary -- Tackling Inequality; Fiscal Monitor; October 2017** - [Glossary -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmglossary.pdf.md){rel="alternate" type="text/markdown"} - [Glossary -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmglossary.pdf){rel="external" type="application/pdf"} - **Preface -- Tackling Inequality; Fiscal Monitor; October 2017** - [Preface -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmpreface.pdf.md){rel="alternate" type="text/markdown"} - [Preface -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmpreface.pdf){rel="external" type="application/pdf"} - **Fiscal Monitor Selected Topics -- Tackling Inequality; Fiscal Monitor; October 2017** - [Fiscal Monitor Selected Topics -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmselectedtopics.pdf.md){rel="alternate" type="text/markdown"} - [Fiscal Monitor Selected Topics -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmselectedtopics.pdf){rel="external" type="application/pdf"} - **Methodological and Statistical Appendix -- Tackling Inequality; Fiscal Monitor; October 2017** - [Methodological and Statistical Appendix -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmstatapp.pdf.md){rel="alternate" type="text/markdown"} - [Methodological and Statistical Appendix -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmstatapp.pdf){rel="external" type="application/pdf"} - **Infographic: Improve Access to Health and Education, IMF Fiscal Monitor, October 2017** - [Infographic: Improve Access to Health and Education, IMF Fiscal Monitor, October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/infographic-improve-access-to-health-and-education-imf-fiscal-monitor-october-2017.pdf.md){rel="alternate" type="text/markdown"} - [Infographic: Improve Access to Health and Education, IMF Fiscal Monitor, October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/infographic-improve-access-to-health-and-education-imf-fiscal-monitor-october-2017.pdf){rel="external" type="application/pdf"} - **Infographic: Scope to Increase Tax Progressivity, IMF Fiscal Monitor, October 2017** - [Infographic: Scope to Increase Tax Progressivity, IMF Fiscal Monitor, October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/infographic-scope-to-increase-tax-progressivity-imf-fiscal-monitor-october-2017.pdf.md){rel="alternate" type="text/markdown"} - [Infographic: Scope to Increase Tax Progressivity, IMF Fiscal Monitor, October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/infographic-scope-to-increase-tax-progressivity-imf-fiscal-monitor-october-2017.pdf){rel="external" type="application/pdf"} - **Infographic: Universal Basic Income, IMF Fiscal Monitor, October 2017** - [Infographic: Universal Basic Income, IMF Fiscal Monitor, October 2017 (Markdown version)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/infographic-universal-basic-income-imf-fiscal-monitor-october-2017.pdf.md){rel="alternate" type="text/markdown"} - [Infographic: Universal Basic Income, IMF Fiscal Monitor, October 2017 (PDF)](/-/media/files/publications/fiscal-monitor/2017/october/pdf/infographic-universal-basic-income-imf-fiscal-monitor-october-2017.pdf){rel="external" type="application/pdf"} --- ## References - [Inequality: Fiscal Policy Can Make the Difference](https://blogs.imf.org/2017/10/11/inequality-fiscal-policy-can-make-the-difference/) - [FM Data on IMF DATAMAPPER](http://www.imf.org/external/datamapper/datasets/FM) - [Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website.](https://www.imf.org/en/email-subscription/index) - [Modify your profile](https://www.imf.org/en/email-subscription/login) _Source: https://www.imf.org/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017_