02207cas a2200241 a 4500 AALejournalIMF019490 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498324632 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. European Dept. Germany : Selected Issues. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (49 pages) IMF Staff Country Reports <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 This Selected Issues paper explores wealth inequality and private savings in Germany. Trends in increasing corporate profits and gross savings have widened top income inequality, as corporations are typically owned by households in the top of the wealth distribution. The impact on income inequality is more pronounced in countries where the rise in profitability was a result of lower wage growth and labor income shares to start with, as was the case in Germany. The evidence strongly suggests this is not the case and underscores the important role of German business wealth concentration in this context. As high corporate savings and underlying profits largely reflect capital income accruing to wealthy households and increasingly retained in closely-held firms, the build-up of external imbalance has been accompanied by widening top income inequality, rising private savings and compressed consumption rates. The concentration of privately held and publicly listed firm ownership in the hands of industrial dynasties and institutional investors is especially prevalent in Germany, possibly reflecting distortions in firm entry, financing conditions and tax incentives. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2019/214 Full text available on IMF http://elibrary.imf.org/view/journals/002/2019/214/002.2019.issue-214-en.xml IMF e-Library