Inflation and Income Growth Boost Wealth Equality, Reducing Inequality in the U.S.
The study looked at how income growth, inflation, and interest rates affect wealth inequality in the U.S. from 1929 to 2009 and 1962 to 2009. They found that higher inflation and income growth can reduce wealth inequality by increasing the wealth of lower and middle-income groups. Surprisingly, higher interest rates also lead to lower wealth inequality, but this effect is not consistent across all measures of inequality.