Reducing Inequality Through Tax and Spending
Rickshaws and a new BMW in the Indian capital, New Delhi. Targeted benefits, rather than universal benefits, are better at reducing inequality, says Coady. (Photo: Jens Kalaene/dpa/Corbis)
In This Episode
Fiscal policy—or the way a government taxes, spends and borrows money—can have a huge impact on reducing inequality. But according to a recent IMF study, that impact has been shrinking over the past decade, as governments scale back social benefits, and make income taxes less progressive.
