01692cas a2200253 a 4500 AALejournalIMF006852 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455210756 1018-5941 BD-DhAAL BD-DhAAL Ranciere, Romain. Inequality, Leverage and Crises / Romain Ranciere, Michael Kumhof. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financial and real crisis. The paper presents a theoretical model where these features arise endogenously as a result of a shift in bargaining powers over incomes. A financial crisis can reduce leverage if it is very large and not accompanied by a real contraction. But restoration of the lower income group's bargaining power is more effective. Mode of access: Internet Kumhof, Michael. IMF Working Papers; Working Paper ; No. 2010/268 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/268/001.2010.issue-268-en.xml IMF e-Library