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In brief: More Inequality Means Higher Inflation

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  • Christopher Crowe

Abstract

All governments claim to want low inflation - but not all achieve it. While poorer countries generally fare worse, inflation rates can differ markedly even between equally wealthy countries. Turkey and Korea had similar levels of per capita income at the start of the 1980s. But while Turkey's inflation ran at an average of 60% a year over the next two decades, Korea's was only 6%.

Suggested Citation

  • Christopher Crowe, 2005. "In brief: More Inequality Means Higher Inflation," CentrePiece - The magazine for economic performance 170, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepcnp:170
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    File URL: https://cep.lse.ac.uk/pubs/download/CP170.pdf
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